GLOBAL SUPPLY CHAIN JUNE 2019 ISSUE

June 2019 Issue 60

ENHANCING THE BUSINESS OF LOGISTICS

THE UAE:

LOGISTICS LEADER

BY FAR Log Square

Squaring the beneямБts with technology

Freezones

Force for economic good

SOHAR Port & Freezone Shoring up new investments

NEW DESTINATION

PORTO The air cargo brand that flies to more countries than any other now flies to Po o, Po ugal.

turkishcargo.com

                                                                  ’                            



Freezones: Favourable and fruitful SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: B Raveendran ravi@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai

Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this handbook is accurate and timely, no liability is accepted by them for errors or omissions, however caused.

Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.

Free Zones (also known as Free Trade Zones – FTZs or Special Economic Zones – SEZs) are by their very definition and nature designed to boost local, regional and international business through 100% ownership provision for foreign investors, and single window administration convenience.

This model has worked very successfully in the UAE and the wider GCC and it is estimated that this country alone has over 50 free zones covering all main business sectors. Whether the business is industrial, commercial, consultancy, retail, distribution, manufacturing, education, health or technology, the UAE free zones have proved themselves ideal locations to establish businesses. The freezones collectively account for a substantial segment of the country’s business and the economy.

The UAE is also the established logistics centre in the Middle East – no surprises here but continues to maintain that lead by far. The recently released 2019 Agility Emerging Market Index puts the UAE in pole position – number one in the region and number three internationally.

The UAE continues to maintain that lead over the years.

However, other freezones in the region such as SOHAR Port and Freezone are rapidly catching up with innovative initiatives, infrastructure spending and tax sops.

Elsewhere, we get the lowdown from Log Square, an associate of the SPAN Group on the power and potency of technology in providing cutting-edge solutions for the retailing, warehousing and distribution industry sectors.

The just concluded Islamic Holy month of Ramadhan is also time for the traditional Iftar and Suhoor corporate parties. We feature two of these hosted by the Dubai-based, high-profile National Association of Freight and Logistics (NAFL) and Turkish Airlines Cargo.

Cyber security is increasingly becoming a matter of concern with the perpetually looming threats from cyber attackers and bad actors via third party vendors. Logistics and supply chain companies and related service providers are no exception.

We feature two expert pieces by high-ranking technologists from two US companies Digital Guardian and BeyondTrust, leaders in data protection platform and access management on how to prevent data breaches.

All this and much more; enjoy the read!

Malcolm Dias Editor malcolm@signaturemediame.com

JUNE 2019 3

June 2019 Issue 60

ENHANCING THE BUSINESS OF LOGISTICS

28 06 NEWS 20 Log Square The Associate Company of the SPAN Group showcases its technological prowess for the region’s logistics and supply chain industry.

24 History made at Khalifa Port Abu Dhabi Terminal welcomes two COSCO 20,000+ TEU mega vessels at Khalifa Port.

26 Digital Guardian – Cyber Guardian Angel Digital Guardian’s Tim Bandos explains how companies can companies best mitigate their Supply Chain risk.

28 UAE: The undisputed Logistics Leader in the Region Our cover story focuses on the eminence of the UAE in the regions logistics sector and more evidence of its professional primacy.

36 OBG Interview Global Supply Chain talks exclusively to Billy FitzHerbert, Regional Editor, Middle East, Oxford Business Group (OBG).

38 Freezones Focus Freezones are here to stay and are increasingly becoming an integral part of GCC economies.

46 NAFL Suhoor Business Reception NAFL hosted a well-attended Suhoor Reception in Dubai during Ramadhan.

4 JUNE 2019

50 Expert Contribution – Tom Craig Strategizing in a time of disruption and transformation.

53 SSI Schaefer Mick Schumacher appointed Brand Ambassador for the company.

54 Turkish Airlines Cargo Iftar Reception An Iftar Reception was hosted in Dubai by Turkish Airlines Cargo during Ramadhan.

56 BeyondTrust Safeguarding your organisation from attacks via your third-party vendors.

58 DHL Express An exclusive interview with Geoff Walsh, UAE Country Manager, DHL Express.

EPG partners with Union Coop for implementation of retailer’s WMS Union Coop, the largest consumer cooperative in the UAE, recently signed a contract with EPG -Ehrhardt+Partner Group, to provide the cooperative with cutting-edge warehouse management system.

The move is intended to automate the Warehouse Management process that will manage the growing warehouse operations of the retailer in an efficient and cost-effective manner.

The contract was signed by Eng. Madiya Al Marri, Director of Properties and Projects Division, Union Coop and Dr. Makrem Kadachi, General Manager –EPG, Ehrhardt+Partner Group. The signing ceremony was attended by Majiruddin Khan, Assistant Director of Trading Division; Aiman Othman, IT Director and other senior officials at Union Coop.

“We have to ensure we stay up-todate on the latest technology trends

and that the same offers us the best possible advantage in every way possible.

We are confident this new warehouse management system will not only improve our efficiency of warehouse operations but also do the same in a cost-effective manner,”said Engr. Madiya Al Marri.

The new technology solutions are aimed at providing Union Coop with modern Warehouse Management System that will manage the growing warehouse operations in a cost-effective and efficient manner.

EPG–Ehrhardt+Partner Group was selected by Union Coop to implement the new WMS System, LFS.wms. Apart from introducing the warehouse management system as a tool, EPG will also provide its warehouse logistic know-how and over the years practical experience to ensure that best practices are also incorporated in the overall target of bringing efficiency in the warehouse operations.

Port of Wilmington takes delivery of new cargo handling equipment

“The introduction of this equipment will support the efficiency, overall productivity and operational capabilities at the port as well as aiding our goal to continuously improve our customer service levels,”said Eric Casey, CEO, GT USA Wilmington.

The three new reach stackers, which are capable of stacking containers five high, arrived at the Port of Wilmington and each unit was delivered in four separate sections – the boom, the chassis, the spreader bar and the counter weight).

Assembly of the machines began on April 29 and all three machines were completely assembled and functional by within a week of their arrival.

GT USA Wilmington, the US arm of Gulftainer, the world’s largest, privately owned, independent ports and logistics company, recently took delivery of three fully electric and eco-friendly 45-ton reach stackers from Kone Cranes.

This delivery is part of a larger order, which includes nine 41-ton Rubber Tired Gantry (RTG) cranes, and is part of the US$500+ million investment into the Port of Wilmington and a new container terminal development at Edgemoor.

6 JUNE 2019

Senior appointments made at PTV Group MENA PTV Group, a provider of software solutions for traffic and logistics, has appointed Michael Waked as the Head of their Saudi and North Middle East operations.

With over 15 years regional experience in the transport sector covering traffic engineering and parking, transport management studies, airports designs (airside and landside), highways and roads designs, Waked joins PTV Group MENA from WSP where he worked as Associate Director.

Matthew Fulcher

Michel Waked

He will be responsible for expanding PTV’s business in Saudi Arabia where the company works with leading Ministries, Agencies and Engineering Houses in Riyadh, Jeddah and Dammam. The company also appointed Mathew Fulcher as the Regional Finance Manger. He has more than 16 years experience in the Finance and Accounting domain at international level with software companies across MEA, APAC and UK. He will drive all financial activities for PTV Group MENA and support business growth in the region. He joins from Aveva Solutions in Dubai.

“Our technology makes mobility of people and goods more efficient, safer and better for the environment. With a strong team in place, we look forward to a great year ahead,’’said Andrea Petti, Managing Director, PTV Group, Middle East, India and Africa.

Emirates Group announces good financials for the 2018-19 fiscal year The Emirates Group recently announced its 31st consecutive year of profit and steady business expansion.

Released in its 2018-19 Annual Report, the Emirates Group posted a profit of AED 2.3bn (US$ 631mn) for the financial year ended 31 March 2019, down 44% from last year.

The Group’s revenue reached AED 109.3bn (US$ 29.8bn), an increase of 7% over last year’s results.

“2018-19 has been tough, and our performance was not as strong as we would have liked. Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets. The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also saw travel demand weaken, particularly in our region, impacting both dnata and Emirates,”commented HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

In 2018-19, the Group collectively invested AED 14.6bn (US$ 3.9bn) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and staff initiatives, a significant increase over last year’s investment spend of AED 9.0bn (US$ 2.5bn).

Emirates SkyCargo continued to deliver a strong performance in a highly competitive market with dampening demand, contributing to 14% of the airline’s total transport revenue.

In an airfreight market facing unrelenting downward pressure on yields and slowing demand, Emirates’ cargo division reported a revenue of AED 13.1bn (US$ 3.6bn), an increase of 5% over last year, while tonnage carried slightly increased by 1% to reach 2.7mn tonnes.

Freight yield per Freight Tonne

Kilometre (FTKM) for the 2nd consecutive year increased by a further 3%, demonstrating Emirates SkyCargo’s ability to retain and win customers on value despite fuel price increases, and a weakened demand in many markets.

dnata performance For 2018-19, dnata recorded its most profitable year with AED 1.4bn (US$ 394mn) profit. dnata’s total revenue grew to AED 14.4bn (US$ 3.9bn), up 10%. This reflects its continued business growth across its four business divisions-both organic through customer retention and new contract wins; as well as via its new acquisitions. dnata’s international business now accounts for 70% of its revenue.

Etihad Cargo launches freighter flights to Singapore Etihad Cargo, recently launched scheduled freighter flights from its hub in Abu Dhabi to Singapore’s Changi International Airport. The weekly flights will continue to Ho Chi Minh City, Vietnam, before returning to Abu Dhabi, reinforcing Etihad’s commitment to serve key logistics hubs in the Asia Pacific region.

The new service meets customer demand for more freight capacity between Abu Dhabi and Singapore,

and compliments the daily wide-body passenger flights between the cities.

These are key markets for Etihad Cargo, and the opening of the direct route between Abu Dhabi and Changi International Airport supports strong economic and trade links between the cities.

In 2018, Etihad Cargo restructured its network and simplified its fleet to five Boeing 777 freighters, to focus on key trade lanes that benefit from Abu Dhabi’s globallycentral location. Etihad has also increased cargo capacity in core markets including China, India and Vietnam, and today’s addition of Singapore further strengthens the freighter network.

JUNE 2019 7

P&O Ports to operate Serbia’s Port of Novi Sad P&O Ports has announced a PublicPrivate Partnership (PPP) agreement to operate the port of Novi Sad, Serbia as part of a long-term investment plan to upgrade equipment and services and to support the Serbian government’s strategy to create an intermodal terminal and logistics centre with rail, road and inland waterways links to the rest of Europe.

The agreement shall grant a right to P&O Ports to operate Novi Sad for an initial 25 years with an option to renew by both parties for another 25 years on expiry.

The agreement for obtaining the property rights on the capital and assets of the port operator of the Port of Novi Sad was recently signed by Dragan Stevanovic, State Secretary of the Ministry of Economy and P&O Ports Chief Executive Officer, Rado Antolovic, following a Memorandum of Understanding signed last year by Deputy Prime Minister Zorana Mihajlovic and Sultan Ahmed Bin Sulayem, Chairman of P&O Ports.

“The Port of Novi Sad provides connections with DP World Constanza, Romania, with onward handling of bulk cargos in Jebel Ali Port, Dubai,”remarked Sultan Ahmed Bin Sulayem, Chairman, P&O Ports.

Cereals are the largest export commodity of Serbia and the World Bank has projected increasing GDP growth of 4% from 2020 for the next decade. Major trade partners include

all European countries with China being the third largest import partner.

Exports are transported to markets primarily by barge out of river ports on the Danube with cargo being transported to Constanza in Romania and shipped to the Middle East and other ports. Trucking is focused on the local and regional market and export via Adriatic ports.

Ingo Alexander Rahn - Country Manager, DHL Global Forwarding, Turkey

Usam Alysain, Country Manager, DHL Global Forwarding, Iraq

strategy and accelerate the growth for the company, in Iraq.

An industry veteran who has been with DHL for 17 years and with more than 25

years of experience in the industry, Rahn first joined the business as Vice President of Airfreight for DHL Danzas Air and Ocean based in Frankfurt, Germany.

DHL Global Forwarding makes key appointments in Iraq and Turkey DHL Global Forwarding has appointed Usam Alyasin and Ingo-Alexander Rahn as Country Manager in Iraq and Turkey respectively. Both of them will report to Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa.

“I am positive that Alyasin and Rahn will drive continued growth for the company in the region, as they have proven their expertise in various roles within the organization over the years,”said Amadou.

Alyasin has been with DHL Global Forwarding since 2011, and has played an important role in driving key customer relationships for industrial projects in his role as Project Operations Manager. In his new role as Country Manager, Alyasin will leverage his understanding of the business and market, to lead business

8 JUNE 2019

Agility reports good Q1-2019 revenues Kuwait headquartered global logistics provider Agility recently reported first quarter earnings of KD 20.3mn, an increase of 7.3% from Q1-2018. First-quarter revenue was KD 378.8mn, and EBITDA was KD 46.3mn, increases of 1.9% and 22.8%, respectively.

“Agility has seen good improvement across the board in the first quarter of this year and we are accelerating our efforts to achieve our targets,”commented Tarek Sultan, Vice Chairman and CEO, Agility.

Agility Global Integrated Logistics (GIL) Agility GIL reported Q1-2019 EBITDA of KD 6.8mn, a 9% decrease compared to the same period a year earlier, the drop is attributable to costs associated with GIL’s digital transformation and commercial investments.

Q1-2019 GIL revenue was affected by currency fluctuations. Net revenue

Etihad Airways lessens carbon footprint Etihad Airways continues to reduce carbon dioxide emissions by implementing fuel saving initiatives, reinforcing its commitment to sustainability.

Following a number of improvements aimed at enhancing operational fleet efficiencies, Etihad Airways reduced 148,000 tonnes of carbon emissions in 2018. The savings are equivalent to approximately 1,236 flights between Abu Dhabi and Barcelona or the removal of over 10,200 cars from the road.

Fuel consumption is influenced by several factors such as air traffic management, weight carried and how the aircraft is flown.

Last year, the airlines B777-200s were retired in favour of the most fuel efficient commercial aircraft in operation, the Boeing 787 Dreamliner, due to its lightweight composite structure.

“By increasing collaboration on a monthly

increased to KD 65.4mn, a 1.2% increase over corresponding Q1-2018 figures. The net revenue increase was driven primarily

by Ocean Freight and Contract Logistics, offsetting decreases in Project Logistics and Road Freight.

Air Freight tonnage grew 5.2% in Q1-2019.

Ocean Freight net revenue performance was driven primarily by yield improvement and TEU growth of 2.3%.

Q1-2019 Contract Logistics performance was strong, with revenue growth of 3.6%.

The Middle East/Africa region (mainly Kuwait, UAE and Egypt) was the key driver of growth and improved margins.

Agility’s Infrastructure Companies Agility Logistics Parks (ALP) reported 23% revenue growth for the quarter, an increase that resulted from strong performance at new facilities completed in late 2018, as well as yield improvement at existing facilities. ALP expects to deliver 150K sqm of warehousing space this year, mainly in Saudi Arabia and Africa. It expects to begin construction of another 275K sqm of warehousing space to be delivered in 2020/21.

basis within the airline’s flight operations, network operations, ground operations areas and fleet engineering, Etihad saw noticeable improvements to its fuel savings and emissions profile, a top agenda for a sustainable airline,”remarked Captain Sulaiman Yaqoobi , VP Flight Operations, Etihad Airways.

Etihad pilots play a critical role in the airline’s environmental initiatives, significantly increasing savings by analysing insights and flight data to effectively apply key fuel efficiency procedures. Utilising a single engine to taxi the aircraft in and out on the tarmac reduces fuel burn. To reduce drag and conserve fuel, pilots select lower flap settings.

Statistics on reduced engine taxiing as well as reduced flap landings have demonstrated record-breaking results. The achieved savings equated to saving fuel for approximately 1,440 hours of flying time, saving 7,900 tonnes of fuel and eliminating 24,900 tonnes of carbon dioxide.

Tarek Sultan, Vice Chairman and CEO, Agility

Tristar, a fully integrated liquid logistics company, posted 13.3% revenue growth in Q1-2019, the main drivers for this growth are road transport and warehousing operations, in addition to the shipping business.

2018

FUEL SAVINGS

148,000 IONS SAVED

18,000

17

}

new fuel reduction initiatives

27g

fuel consumption

/

84g CO2 per

seat-kilomete r

7

between Abu Dhabi and Barcelona for 3 years or

10,200 cars

removed from

tonnes

for reduced flap landings

950

new fuel efficient B787

hrs

pilot training on fuel saving s

FUEL

1.6%

FUEL

fuel consumed per flight

the road

7,000

CO2 saved

tonnes

for taxi in & out

1,236 flights

=

t o n n e s CARBON EMISS

FUEL

FUEL

FUEL

FUEL

FUEL

FUEL

FUEL

FUEL

377,000 Barrels of fuel saved

FUEL

59,200

acres of trees preserved*

* https://projects.ncsu.edu/project/treesofstrength/tre

efact.htm

A new app has been introduced to all pilots that provides up-to-date information on current fuel-saving achievements as well as saving opportunities for every flight they are performing.

JUNE 2019 9

Swisslog presents its latest suite of automated logistics solutions Swisslog, the global leader in robotic, data-driven and flexible automated solutions, recently presented its range of modular yet scalable automation solutions to meet the dynamic needs of retail, e-commerce and multi-channel logistics.

E-commerce has fundamentally changed the nature of the retail supply chain. This segment is currently the fastest growing segment in the global economy.

While this means tremendous opportunity for both multichannel retailers and pureplay e-commerce companies, meeting the challenges of omni-channel fulfillment operations is compounded by consumer expectations for speed, individuality and convenience, forcing retailers to rapidly adjust their supply chain concepts.

Swisslog unveiled the latest solutions for smart warehousing, included ACPaQ,Vectura, PowerStore, AutoStore and CarryPick for small parts storage and pallet operations. These innovative logistics automation solutions increase the speed of order fulfillment, improve order accuracy and effectively manage an ever-increasing number of SKUs. According to a new market research report, global forecast to 2023 the global market is estimated to be US$ 46.22bn in 2018 and is projected to reach US$ 80.64bn by 2023, at a CAGR of 11.8% during the forecast period. The growth of the market can be attributed to the exponential growth of the e-commerce industry, advancements in robotics, and the emergence of IoT. “Our solutions have provided our customers with significant improvements in logistics enabling optimal usage of the same space.” commented Alain Kaddoum, General Manager of Swisslog Middle East.

Saudia Cargo restarts freighter flights to Guangzhou and Mumbai Saudi Airlines Cargo has resumed its freighter flights from the Kingdom to Guangzhou in China and Mumbai in India with a weekly freighter flight effective first of April 2019 to meet the growing demand for cargo operations and stimulate fright off-take from the Asian continent.

Saudia Cargo currently operates 5 weekly flights to Dhaka and 7 weekly flights to Hong Kong.

10 JUNE 2019

“This operation reflects the company’s policy aiming to enhance and increase trade activities between the Kingdom and Asian giants India and China,”said Omar Hariri, CEO, Saudia Cargo.

Saudia Cargo will mobilise its logistical capabilities to and from both destinations, adding an extra weekly freighter flight to Guangzhou operated by a Boeing 777F Aircraft and another to Mumbai, operated by a Boeing 747-400F, offering estimated 100 tons of capacity to each destination in addition to the belly-capacity on board Saudia passenger flights.

During this year Saudia Cargo

strengthened its presence in the Asian continent to fill the exceeding demand for Air Cargo & logistical services through the belly-capacity on-board Saudi Arabian Airlines that operates 480 Weekly flights with the

capacity of 5,836 Tons a week to and from 21 destinations in Asia.

Saudia Cargo, a member of SkyTeam Cargo, offers 225 international destinations and 26 routes within the Kingdom of Saudi Arabia.

Emirates Global Aluminium’s efforts in waste reduction get Tadweer recognition Abu Dhabi Waste Management Centre (Tadweer) has acknowledged four Abu Dhabi-based entities that annually generate more than 250 tons of waste for their outstanding efforts in minimising waste production at source through adopting the latest technologies and best practices in integrated waste management.

Launched in 2013, Tadweer’s initiative to recognize companies that demonstrate a strong commitment to waste reduction aligns with its priority to promote innovative waste management programs that support the objectives of the Abu Dhabi Integrated Waste Management Plan.

Last year, EGA provided cement companies with more than 41,000 tons of spent pot lining for use as an alternative fuel and raw material, more than it produced, making EGA a world leader in the re-use of this waste.

Using SPL (Spent Potlining, a waste material generated in the primary aluminium smelting industry) as an alternative feedstock also reduces CO2 emissions from cement manufacturing.

Overall, last year EGA achieved a 15% reduction in waste generation and increased its recycling from 96,000 tons in 2017 to over 102,000 tons in 2018. It also

diverted 34% more of waste from landfill compared to 2017.

“This initiative aligns with Tadweer’s plan to address the continued rise in waste production due to rapid population growth and urban expansion in the emirate of Abu Dhabi,”remarked Dr Salem Al Kaabi, General Manager, Abu Dhabi Waste Management Centre.

achieve on-time deliveries at a reduced cost.

It will implement data-driven routing engine to increase timely deliveries and provide a

delightful and engaging experience to the customers by empowering them to live track their shipments.

“We are excited to work with the largest postal and retail players in the region and look forward to deliver exceptional levels of operational efficiencies and delightful customer experience. We are scaling our team in the region and seeing tremendous potential here,”says Gautam Kumar, COO, FarEye. “Global logistics spending is set to soar to US$10.6trn by 2020 with transportation accounting for the majority at 70%. We are constantly working towards empowering global leaders with predictive visibility and operational intelligence to achieve on-time deliveries at a reduced cost,”commented Kushal Nahata, CEO, FarEye.

FarEye teams up with Emirates Post and Landmark Group to streamline deliveries FarEye, a pioneer in enabling digital logistics, achieved another milestone by winning a deal to work with Emirates Post, one of the largest post and parcel service provider in GCC (Gulf Cooperation Council) and Landmark Group, the largest retailer of the region.

This development comes at a time when supply chain and logistics organizations in GCC are looking for ways to deliver on changing customer expectations, ensure rapid scalability, locate addresses accurately and gain competitive advantage.

As a part of the deal, FarEye will implement an intelligent delivery platform to

JUNE 2019 11

DP World recognised for creating sustainable supply chain DP World, UAE Region has been awarded for its efforts to create a more efficient and sustainable supply chain when it was awarded the Supply Chain Sustainability Award at this

year’s Gulf Petrochemicals and Chemicals Association (GPCA) Supply Chain Conference.

Mohammed Sulaiman, Business Development Manager, DP World, UAE

Seatrade to host UAE Maritime Week Seatrade Offshore Marine & Workboats; Seatrade Shiptech and Seatrade Maritime Awards Middle East, Indian Subcontinent & Africa have recently been announced as three major events to be held during UAE Maritime Week 2019, which runs between 22 and 26 September.

The maritime-led week of activities also includes several other associated shipping & maritime events and the popular Dubai Maritime Agenda – a Dubai Maritime Cluster Office biennial event.

According to Chris Morley, Event Director, Seatrade Maritime, Informa Markets, the decision to align Seatrade Offshore Marine & Workboats Middle East with UAE Maritime Week was to ensure it was part of this important industry week and alongside other Seatrade events.

“We are delighted to be working again with Dubai Maritime City Authority (DMCA) and Dubai Maritime Cluster Office to bring several world-class events to this critical week,”remarked Morley.

Recognised as the world’s ninth leading maritime capital (Source: Menon Economics), Dubai has reaffirmed its position as a first-

12 JUNE 2019

class international maritime hub whilst continuing to develop a safe maritime environment for maritime operations and businesses.

“The decision to organise the UAE Maritime Week every year instead of every two years represents an important step towards promoting Dubai and the UAE’s successful maritime experience on the global stage,” said Amer Ali, Executive Director, DMCA.

Region, received the award on behalf of the company at a presentation ceremony.

The Supply Chain Sustainability Award recognises organisations that initiate best practices in supply chain management through programmes or projects that have a noticeable impact on the economy, environment, or society.

DP World has introduced numerous initiatives towards building a sustainable supply chain in recent years. On the port operations side, 60 manual Automatic Rail Mounted Gantries (ARMGs) in Terminal 2 were retrofitted to be automated, resulting in savings of AED 23 million annually.

The company has also launched several green initiatives, from creating the largest solar power array in the Middle East to power JAFZA to implementation of selfdriving fleet of trucks.

“We are pleased to receive this prestigious award as it recognises our efforts to help create a better supply chain and the harnessing of numerous new technologies such as blockchain, IoT, and cloud computing,” said Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region.

Jebel Ali Port and JAFZA in particular have grown to have a significant impact and are driving forward economic diversification.

The two entities jointly contribute to a third of Dubai’s total GDP. JAFZA accounts for around a quarter of total foreign investment inflow into the emirate, while the port accounts for more than two-fifths of Dubai’s total trade value.

Saudi investors raise US$ 3.5mn for Trukkin Saudi Arabia and UAE-based logistics firm Trukkin has raised US$ 3.5mn in a funding round led by investors from the Al-Namlah, Al-Madi and the Abanumay Family Groups and Batic Investments and Logistics. The startup will use the investment to scale up its services across the GCC region.

Trukkin operates throughout the GCC region and aims to innovate and simplify logistics and land transportation for longhaul trucking. The company claims to have shipped to more than 200 locations in the Middle East and to have completed over 10,000 long-haul, business-to-business truck movements in Saudi Arabia alone.

“Trukkin’s vision, operational efficiency, capital utilisation, and sound business model drove us to partner with them in the region over other competitors. Trukkin knows the pulse on the ground,”commented Mohamed Al Namlah, Managing Director, Investor Amnest Group.

“Trukkin is building up its marketplace to

Amazon initiates a US$ 575mn financial infusion in Deliveroo Deliveroo recently announced that Amazon is leading a new US$ 575mn funding round alongside existing investors and stakeholders. This takes the total Deliveroo has raised to date to US$ 1.53bn With this funding, Deliveroo will continue to build its services—bringing customers the food they want whenever and wherever they want it, offering even more work for riders, and helping restaurants to grow their businesses by reaching new customers.

It is expected that the new investment will contribute to growing Deliveroo’s engineering team based in its London headquarters, creating more high-skilled jobs and building on London’s growing reputation as a tech hub. It will also serve to expand Deliveroo’s delivery reach in order to continue offering its services to new customers.

connect thousands of mostly independent truckers. The long-haul land transport market is highly fragmented and disorganised, and our aim is to institutionalise and professionalise this business,”said Janardan Dalmia, CEO, Trukkin.

Launched in 2017, Uber-replicating Trukkin operates an asset-light model, which means it does not own the trucks it uses.

Through its app and online marketplace, the company brings together shippers who need more transparency and easier access to trucks with truckers who need better access to demand and higher fleet utilisation. Their client base ranges from businesses who order close to 100 trucks a day to ones with smaller needs who order as few as three trucks a month.

The financing will also enable it offer new innovations in the food sector, for example through delivery-only super kitchens as well open new related business models. Additionally, it will help restaurants expand to new areas at a lower cost and enhance delivery efficiencies thereby bringing more choice and better customer experiences to local vicinities.

“This new investment will help Deliveroo to grow and to offer customers even more choice, tailored to their personal tastes, offer restaurants greater opportunities to grow and expand their businesses, and to create more flexible, well-paid work for riders,”explained Will Shu, Founder and CEO, Deliveroo.

“We commend Deliveroo’s approach and dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options,”commented Doug Gurr, Amazon UK Country Manager.

JUNE 2019 13

Grandweld Shipyards launches its latest boat for the KOC fleet The UAE-based, Grandweld Shipyards, recently announced the launch of its sixth pilot boat for Kuwait Oil Company (KOC). In accordance with the contract contract signed in May 2017, the ‘Meskan’ is the final boat of ten – four crew transport boats and six pilot boats – that Grandweld was required to build for KOC’s fleet.

The new ‘Meskan’ boat, which was specifically designed to meet the needs of KOC, was launched ahead of schedule as

per the contract between Grandweld and KOC. In accordance with the classification standards of Lloyd’s Register, ‘Meskan’ will provide high operational efficiency and elite safety.

“We are proud to once again demonstrate our first-tier time management and control of project workflow to meet deadlines promptly,”remarked Jamal Abki, General Manager of Grandweld Shipyards.

“The launch of these vessels comes at

a very opportune time for KOC, as our operations have expanded exponentially.

The high level of satisfaction and positive feedback we have received from our crews about these boats, played a major role in contributing to our decision to choose Grandweld for these builds,”commented Sami Al-Sawagh, Marine Operations Manager, KOC. ‘Meskan’ is considered remarkable in build, combining both steel and aluminum in the structure of the hull to achieve greater stability in sailing, and ensuring optimal safety. Boasting a maximum speed of up to 24 knots, the boat has a sailing range that reaches up to 250 nautical miles.

expanding cargo and logistics portfolio.

“Etihad and Armaguard have shared a long history of working together to provide the best solutions for our customers. We

will continue as a strong network alliance, servicing the global valuables market,” commented Gary Allen, CEO, Linfox Armaguard Group.

“We are now in a position, with Etihad Secure Logistics operating as a wholly Etihad-owned business, to better support the home market in its next phase of growth and development,” remarked Abdulla Mohamed Shadid, Managing Director, Cargo and Logistics Services, Etihad Aviation.

Etihad has appointed Vincent Hampton as Managing Director, Etihad Secure Logistics.

As a management and security specialist, Hampton held various roles with the United States Air Force and the US Department of State in Abu Dhabi, and a decade of leadership roles in security consulting within the UAE private sector.

Etihad enhances its cargo and logistics portfolio with new acquisition Etihad Airways has acquired the shares held by Armaguard Linfox Group (Australia) in Abu Dhabi-based joint venture Armaguard Valuables Management AVM), becoming sole shareholder of the company and renaming it Etihad Secure Logistics Services.

In the six years since it began operations, AVM has successfully grown from a start-up to become a major player in the UAE secure logistics and valuables management market.

With increasing opportunities in their respective markets, both Etihad and Armaguard have agreed now is the right time for the business to operate as a full subsidiary of Etihad Airways as part of Etihad’s

14 JUNE 2019

Swissport’s 2018 EBITDA rises 24.1% With revenue of 2.99bn Euro for 2018, Swissport’s business volume was up 6.7% year-over year. The airport ground services business contributed 2.43bn Euro, up 6.8%.

In air cargo handling, total revenue amounted to 0.56bn Euro, up 6.5%. Swissport’s EBITDA result improved to 273.2mn Euro, an increase of 24.1% over 2017. Operating cash flow climbed to 182.5mn Euro, up 40.3% compared to the previous year.

2018 was an excellent year for Swissport, both from a strategic perspective and from a results point of view. We actively realized organic revenue growth above the market and a favorable market environment gave us additional lift,” remarked Eric Born, Group President & CEO of Swissport International AG. In airport ground services, Swissport performed 2.2mn aircraft turns in 2018, up 5.7% over 2017. The company served 282mn passengers on behalf of its airline clients – 12.5% more than in 2017. Air cargo tons handled increased to 4.8mn, up from 4.7mn tons a year earlier. At year-end 2018, Swissport was active at 303 airports in 50 countries on six continents.

Solutions for a healthy world Tranzone operates a state-of-the-art 3PL warehouse in Jebel Ali Free Zone. We have partnerships with the leading pharmaceutical, medical device and animal health companies around the world.

Healthcare Logistic Services: Air Freight Sea Freight Land Transportation Value Added Services Warehousing & Distribution Return logistics Documentation Tranzone FZCO (Member of Banaja Holdings)

Jebel Ali Free Zone (South) Plot No: S20129 P.O Box : 262955, Dubai, United Arab Emirates, Tel : +971 4 811 0000

Web: www.tranzone.ae JUNE 2019 15

Gulf Navigation Holding announces 19% revenue growth in Q1-2019 Gulf Navigation Holding has announced its financial results for the first quarter of 2019. During Q1-2019 the company achieved operating revenue of AED 45mn compared to AED 37.7mn during the same period of 2018, a YoY increase of 19%.

The Company reported net loss of AED

11 million in Q1-2019 compared to profits of AED 5mn during the same period last year.

During the quarter, the company’s petrochemical tanker Gulf Deffi entered the dry dock for the mandatory special survey work, resulting in 50 days of off-hire for this vessel during Q1. GNH also incurred

Shipa Delivery and Monkibox team up with ‘Toys with Wings’ Shipa Delivery, a last-mile delivery provider in the GCC, and Monkibox, a children’s subscription E-commerce company that supplies monthly boxes of developmental toys, books, and products to parents’ doorsteps, have joined forces for Ramadan to help ‘Toys With Wings’, a charity that provides new and used toys for sick and underprivileged children.

During this period, Shipa Delivery will collect pre-loved toy donations from families when delivering their monthly subscription products on behalf of Monkibox. The technology-driven logistics company will then consolidate and transport the donations to ‘Toys With Wings’.

The three organizations began the partnership to help parents involve their children in the

16 JUNE 2019

increased depreciation and finance costs on account of acquisition of livestock carriers in Q4-2018, which impacted the net profit.

“Our immediate focus is to complete the necessary vessel dry-docks and achieve debt refinancing to align Gulf Navigation’s capital structure to its operations. We are repositioning our balance of spot and long term charter contracts to optimize the operating revenues,”remarked Saeed Mubarak Al Hajeri, Chairman of the Board.

spirit of selfless giving at their earliest stages of development, and to de-clutter their homes of toys that children have outgrown.

“We’re excited for this partnership with ‘Toys with Wings’ and Shipa Delivery to help build a foundation of charitable giving for little ones by involving them in donating their pre-loved toys,” remarked Rana El Sakhawy, Co-Founder and General Manager, Monkibox.

“It is our honour to be able to work in that spirit with Monkibox and ‘Toys with Wings’, to bring smiles to children who need it most,” commented Borhene Ben Mena, CEO, Shipa Delivery.

The process of giving is simplified by Shipa’s delivery technology, comprising a free app that customers use to order collections and deliveries instantly on demand, and track Shipa’s drivers, turn-by-turn, in real time.

UPS recently announced an agreement with Clean Energy Fuels Corporation to purchase 170 million gallon equivalents of renewable natural gas (RNG) through 2026.

This is the largest commitment for use of RNG to date by any company in the United States, with a range of 22.5-25mn gallon equivalents per year. RNG is a key part of UPS’s strategy to increase alternative fuel consumption to be 40% of total ground fuel purchases by 2025, supporting the logistics leader’s efforts to reduce the absolute greenhouse gas (GHG) emissions of its ground fleet 12% by 2025.

“Renewable natural gas, produced naturally from bio sources such as landfills and dairy farms, not only turns trash to gas, but it turns it into clean gas,” said Mike Casteel, Director, Fleet Procurement UPS. By switching from diesel fuel to RNG, UPS vehicles fueling at 18 company-owned and operated natural gas stations across 12 states will realize a significant reduction in greenhouse gas emissions, as much as 1,074,000 metric tons of GHG over the life of

UPS makes its biggest purchase of renewable natural gas in US

the agreement. This is equivalent to planting 17,000,000 trees, removing 228,000 cars off the road or recycling 374,000 tons of waste that would otherwise be sent to the landfill.

Since 2009, UPS has invested more than US$ 1bn in alternative fuel and advanced technology vehicles and fueling stations globally.

JUNE 2019 17

PTV Group and Tatweer set up real time dispatch monitoring system

Shurooq and Besix Group announce launch of Qatra water reuse plant Sharjah Investment and Development Authority (Shurooq) has officially started the construction of Qatra, a joint venture with Besix Group to develop new water reuse plant in Sharjah’s Al-Sajaa industrial area.

Set for a January 2020 completion, the plant will produce 5,000 cubic metres per day of high-quality water for non-drinking purposes out of treated effluent from the Al Saja’a Sewerage Treatment Plant.

This water will be ideal for industrial and domestic uses such as landscaping, and will be a sustainable alternative to desalinated water with four times less energy consumed in its production process. “Such partnerships

enable us to find advanced solutions that align with current consumer trends in Sharjah, the UAE, and the region at large,”said Marwan Al Sarkal, Executive Chairman, Shurooq.

“This is the first project under the Shurooq and Besix alliance and it will be followed by many like it both in the wastewater treatment and water reuse,”remarked Gurvan Dersel, General Manager, Qatra.

“Treated sewage effluent (TSE) has tremendous potential in supplementing the ever-growing demand of water. Typically used for watering parks and landscaping purposes, this new treatment solution will allow for a wider usage,”Dersel continued.

Bahri participates in Breakbulk Europe 2019

Breakbulk Europe is the continent’s largest exhibition designed for the breakbulk and project cargo industry.

Bringing together Engineering, Procurement and Construction (EPC) companies, ports, forwarders, transporters and other cargo specialists and industry experts, the event discussed the latest developments in the maritime sector including innovation and new technologies.

Highlighting its global presence and capabilities, Bahri, participated in Breakbulk Europe 2019 held in May in Bremen, Germany.

Bahri Logistics, one of the top 10 breakbulk carriers in the world and one of five business units within Bahri, displayed its industryleading maritime capabilities at the three-day exhibition.

“As technology and market needs continue to disrupt the maritime industry, Bahri remains at the forefront of efforts to develop new solutions that will cater to the varying needs of our clients and that can create a transformative impact on the global shipping business,”commented Ahmed Al-Ghaith, President, Bahri Logistics.

With over 11,000 industry professionals and key decision makers in attendance,

18 JUNE 2019

PTV Group, a well-established provider of traffic and logistics software solutions, has collaborated with Tatweer to set up a real-time system that enables law enforcement authorities in the UAE to effectively manage their car dispatches to respond to emergencies.

“We worked with PTV Group to implement PTV Optima and PTV Hyperpath softwares to optimise response time to emergencies by dispatch vehicles,” said Dr. Atef M. Garib, CEO, Tatweer.

“Our software helps authorities with real-time traffic situational awareness, traffic forecast and route optimization to allow emergency vehicles to reach the emergency site as soon as possible,” commented Andrea Petti, Managing Director, PTV Group.

PTV Optima software components provide real time traffic information with an ability to forecast the traffic flow.

PTV Hyperpath routing engine, integrated with PTV Optima, is used to optimize the dispatchers’response to any emergency situations that occurs by estimating the travel time between current location of emergency vehicles and the desired destination by displaying the drive time.

The solution helps the dispatcher to select the emergency vehicle that will reach the destination in the shortest time and to guide it on the fastest route taking into consideration current and forecasted traffic congestion delays.

Inventory optimisation with Slimstock

Do you want to increase product availability and decrease stock-outs? Automate your ordering process and focus on driving profitability? Seamlessly integrate demand forecasts for promotions into your daily ordering process?

Here at Slimstock, these are some of the goals we have helped over 850 customers achieve over the last 25 years. The combination of our supply chain knowledge and award-winning software has enabled us to achieve a 96% client retention rate.

We take pride in achieving strong return on investment for our clients. Focusing on the intricacies of our clients’ operations enables us to adopt a truly customer centric approach to inventory optimisation. With our passion for inventory management, specialist focus and best-of-breed software solution, we enable our customers to overcome complexity and increase profitability.

Results

Inventory Management Solutions

Forecasting & Demand Planning

Inventory Optimisation

Supply Chain Tactics

Reporting & Simulation

-50%

REDUCTION IN STOCK OUTS

-30% REDUCTION IN INVENTORY

+5%

INCREASE IN SALES

-30%

DECREASE IN WASTE

Slimstock Middle East & Africa Suite 2902 & 2903| JBC 1 | Cluster G | Jumeirah Lake Towers | Dubai Phone: +971 (4) 294 1949 READ MORE WWW.SLIMSTOCK.COM

Experts in inventory optimisation

SPAN GROUP & LOG SQUARE

T

his year, Span Group commemorates an important milestone – its 30th anniversary. From humble beginnings since its founding in Dubai in 1989 by Engr. Walid Daniel, currently the company’s Managing Director, Span Group has since built a formidable reputation and an impressive corporate track record over the past three decades.

The company, which has overseen and executed projects in over 20 countries across the globe, currently has a multilingual workforce of over 350 personnel. As an expression of goodwill and testimony, 60% of the company’s revenues emanate from repeat business reflecting the cohesion and confidence reposed by its clientele.

Global Supply Chain met Jacques Adem, Managing Director of Span Group’s sister company LogSquare Square for an exclusive update and low-down on a wide range of issues including the Group’s evolution, its present endeavors, and vision for the ‘’Warehouse of the Future’.

20 JUNE 2019

Global Supply Chain (GSC): How does one design approach work or is it best to go to multiple experts for an Automation and e-commerce design?

Jacques Adem (JA): An experienced integrator with multiple skills and capabilities can both design and plan an e-commerce fulfillment facility, depending on the customer’s objectives and requirements.

The integrator should have a detailed understanding of storage solutions, conveying systems, automated storage and retrieval solutions, and an extensive experience in integration and technology.

Despite one having knowledge of systems, it is typically not enough. A deep understanding of the warehouse operations is also as critical. When all these elements are combined during the design phase, then the automated system characteristics such as through put, agility, flexibility, scalability, seamless data flow, tractability, performance and key performance indicators (KPIs) will work in

SPAN GROUP & LOG SQUARE

Spanning the region with integrated

logistics

solutions

Squaring the benefits

Span Group, which specialises in the comprehensive and seamless provision of solutions for the entire retail supply chain and ancillary segments, is progressively moving towards expanding both its product portfolio and footprint in the region. One of Span Group’s associate companies is 2009-founded LogSquare headed

by Jacques Adem, which focuses on warehouse automation solutions servicing the region out of its Dubai Silicon Oasis office tandem to support the customer’s operations and improve the efficiency and performance.

GSC: How vital is automation and technology in the current context for the regional logistics and supply chain industry?

JA: Due to the changing nature of the market and the new requirements in e-commerce and the ever increasing customer demands, automation and technology are becoming increasingly vital.

Faster and streamlined operations are becoming critical to achieve higher throughput in the warehouse. This is forcing companies to look at ways of doing more with less and hence the pickup of automation.

GSC: How does the Middle East stack up with Automation and Technology vis-Ă -vis the rest of the world?

JA: As technology continues to change the world, the Middle East is keeping pace with artificial intelligence, robotics, automation, and machine learning.

The pace of change has been gradual, but is now rapidly growing in the region especially due to the commitment and support from the government sector. Bringing all these diverse and disparate elements together in unison to successfully accomplish a project requires expertise and experience and is vital for the successful implementation of key objectives set.

GSC: How does this region bridge the technology gap?

JA: Finding good automation resources in most markets is challenging especially in our region. What makes it more challenging is having imported electro mechanical equipment with a support system located abroad.

JUNE 2019 21

Serious issues such as slow response for support and time difference can render a busy warehouse to a temporary halt resulting in work interruptions and delayed shipments.

Span Group and LogSquare noticed and tackled this issue a few years ago. We took proactive measures to mitigate typical automation challenges especially when it comes to technical support and response time.

Our most important asset is our resources. We made sure that all our resources, including the technical leads, the programmers and equipment installers are all well trained and up to date with the latest tools and resources.

LogSquare have an on-going agreement with our automation equipment principals in Europe and elsewhere to ensure that our resources are kept abreast of all the latest technical subjects including programming, diagnostics and support. We also have ongoing automation projects in our pipeline which makes our resources continuously challenged and motivated.

However, the most strategic decision we undertook a couple of years ago, was to keep the intelligence, software controls, and programming for all our automation projects locally in the region. That is why we developed the first Warehouse Control Solution in the region during 2016 and 2017. At that time, the team at LogSquare

22 MAY 2019

developed the entire PLC (programmable logic controller) system to ensure it was all available in-house.

The platform has functions and features equivalent to the leading automation solution providers with the added advantage of being supported locally. Our Warehouse Control Solution (WCS) system has the capabilities to integrate with client’s ERP and WMS systems on one hand and to an array of automation equipment such as conveyors, sorters, lifts, AS/RS (automated storage and retrieval system) and AGVs (automated guided vehicles) equipment on the other hand. We have been implementing this solution for the past three years and are currently enjoying the confidence of large and medium size customers that entrusted us with their Automation projects.

GSC: What are the important differences when it comes to e-commerce fulfillment facility design?

JA: Automation projects are relatively new in our region and we can trace DC automation to the early years of 2010, however e-commerce fulfillment facilities are very recent and are on the rise.

Such facilities require different activities within the four walls that we did not take into consideration in traditional warehouse designs for the pre e-commerce era. In a nut shell, the main difference is due to the fact

Jacques Adem is the Co-founder and Managing Director of LogSquare.

Leveraging on academic studies in engineering and management, Jacques has compiled more than 20 years of experience in the Supply Chain Solutions and Logistics fields. He keeps strong links to the maritime industry where he enjoyed his initial carrier in the family owned business.

As a Business Director, Jacques has headed projects in different supply chain applications covering the cycle from Inception till hand over. He is currently spearheading LogSquare and spreading automation in the industry.

SPAN GROUP & LOG SQUARE

that we are no longer receiving pallets and ship only pallets or cases.

We now receive rainbow pallets and shipping single units, which in turn has imposed the need for different warehouse design criteria to be able to cope with a much larger throughput and multiple peaks per day. This along with the spike in returns has introduced a whole new set of challenges.

Examples of such designs criteria include larger receiving areas; vertical space incorporation; larger mezzanine; shelving as the main storage medium rather than pallet racking; incorporating large space for returns handling; heavy reliance on a network of inbound and out bound conveyor systems; intensive use of batch picking yield for the design of large areas for the order consolidation as well as the incorporation of outbound sorters.

That is why the design should include some form of Put-to-Light walls or a dedicated space designed specifically for products sorting into orders using high speed sorters.

Finally we have designed an assembly line style packing area to accommodate tens of work stations with end-of-line capabilities to sort the packed parcels into the various courier routes or cut-off times.

Due to this, the outbound area new design should call for a much larger space dedicated to accommodate the packing, buffering and loading of thousands of orders.

GSC: How does one ensure reliability in implementing systems?

JA: First, you must select a reliable equipment vendor and partner that have a good reputation and extensive industry experience. Then you must make sure to choose a local System Integrator that has the trained resources and expertise to handle an automation project, including the local WCS software support.

Third, ensure that well-known electro mechanical component under the hood.

Incorporate preventive maintenance programs with regular inspections scheduled and carried out by service engineers during idle time to thoroughly examine the functionality and safety of the equipment, and corrective measures should be taken to prevent future and unforeseen failures.

Also equally important is to maintain an inventory of crucial spare parts list and sign a local maintenance and support contract with a reasonable SLA (service-level agreement) response time. Finally, make sure the customer personnel are well trained for critical issues and empower customer’s technical resources and provide well documented SOP.

Log in to the Square…

LogSquare is a provider of intra logistics engineered and automated solutions.

LogSquare offers a complete range of comprehensive integrated solutions and services right from inception to execution. The solutions range from the provision of handling equipment and controls for the highly automated facilities to advanced IT solutions within the Supply Chain Domain.

In addition, consulting services are provided to assist companies in streamlining their supply chains and for designing sophisticated facilities and operations. The products and services categories include among other conveyors and sortation systems, automated storage and retrieval systems, advanced picking modules, Systems and controls, garment-on-hanger applications (GOH) and vertical movers.

GSC: What are the Span Group’s strengths, capabilities and portfolio of service offerings in this area?

JA: Span is an integrated solutions provider.

We offer multiple services including warehouse consultancy, warehouse design, operation design, storage solutions, material handling equipment, automation equipment, semi automation solutions such as put to light, pick by light and voice.

We utilise our expertise to conceive and design e-commerce fulfillment centers and full automation projects relaying on LogSquare’s expertise in this area while ensuring that our local team is fully capable of supporting our clients.

GSC: What are your expansion plans for the region?

Over the years Span grew by adding new product lines such as storage solutions, office solutions, WMS, demand planning, consultancy practice, MHE and automation.

In addition to our head office in Dubai, we also opened four other offices in Saudi Arabia, Beirut, Abu Dhabi and Qatar. Span’s next expansion will be in West and North Africa.

LogSquare’s main differentiators are its local engineering and implementation capabilities with a European backbone. LogSquare has successfully completed several projects in the Middle East region and is currently working on several more.

The solutions have covered several business verticals with a recent focus on Rack Clad, e-commerce and Retail DC applications.

Span Group Profile Span is a leading consultant and solution provider of systems and equipment for distribution centers, supply chain, and workplace requirements.

The company has implemented innovative solutions to a wide spectrum of end users in the region, including 3PL, FMCG, military and government, retail, healthcare, manufacturing, automotive and hospitality.

JUNE 2019 23

KHALIFA PORT ABU DHABI

CSP Abu Dhabi Terminal welcomes two 20,000+ TEU mega vessels COSCO Solar and Pisces are the largest vessels to call at Khalifa Port

“The terminal has been built to accommodate the evolution of trade in an increasingly competitive global economy; applying the latest port technologies to improve efficiencies, reduce calling times, and ultimately deliver a competitive edge to our customers,”commented Captain Ju Weiping, CEO, CSP Abu Dhabi Terminal.

Abu Dhabi Ports is the operator and manager of the Emirate’s commercial and community ports, as well as Khalifa Industrial Zone (KIZAD). The CSP Abu Dhabi Terminal, which was inaugurated in December, connects Khalifa Port to CSP’s global terminal portfolio covering 285 berths at 37 ports worldwide.

The deep-water, semi-automated container terminal includes the largest Container Freight Station (CFS) in the Middle East, covering 275,000sqm. The advanced facility offers facilities for full and partial bonded container shipments, the full range of container packing services, shortterm warehousing for de-consolidated cargo as well as easy connectivity with container terminals in Khalifa Port.

COSCO’s first international greenfield port

C

SP Abu Dhabi Terminal, a container terminal built and operated by China’s COSCO SHIPPING Ports Limited (CSP) at Khalifa Port in partnership with Abu Dhabi Ports, has received two of the world’s largest mega-vessels within less than a month, further cementing Abu Dhabi’s position as a global maritime hub.

The ships MV COSCO Solar and Pisces are the third and fourth main line vessels to pass through CSP Abu Dhabi Terminal since it started trial operations on 20 April 2019. They follow the arrival of MV Mercury, a Chinese container ship with a capacity of 14,000 TEU and MV Globe which arrived in April 2019 with a capacity of 19,000 TEU.

24 JUNE 2019

With a capacity of 21,000 TEU, MV Solar, is the largest ship ever to call at Khalifa Port.

The Pisces held the same distinction for just under three weeks with its capacity of 20,000 TEUs. The arrival of the ships, which started their journeys from Qingdao in China, highlights Abu Dhabi’s position as a major trade hub along China’s Belt and Road Initiative (BRI).

Immense port handling capacity “We have ensured that through CSP Abu Dhabi Terminal, Khalifa Port is able to handle the largest vessels of today and adapt to those of tomorrow,”remarked Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.

The terminal is also the first international greenfield subsidiary of COSCO Shipping Ports, whose ultimate parent company, China COSCO Shipping Corporation Limited, is the largest integrated shipping enterprise in the world.

The CSP Abu Dhabi Terminal has a design capacity of 2.5mn TEU, with 1200 metres of quay. The water depth of the terminal is 18 metres, allowing it to accommodate megavessels typically carrying in excess of 20,000 TEU. CSP has invested AED 1.1bn in capital expenditure on construction and machinery at the terminal.

CSP Abu Dhabi Terminal is the result of a 35-year agreement between Abu Dhabi Ports and COSCO Shipping Ports, and forms part of a five-year strategy by Abu Dhabi Ports aimed at strengthening the maritime sector in the Emirate and driving economic diversification.

The strategy, in line with Abu Dhabi Economic Vision 2030, aims to increase regional trade and attract foreign direct investment. Abu Dhabi Ports has earmarked AED10 billion in investment that will increase capacity at Khalifa Port from the current 5 million TEU to 9.1 million TEU, which also includes boosting capacity at Terminal 1 to more than 5 million TEU.

EQUIPPED FOR THE FUTURE EQUIPPED FOR THE FUTURE

Companies the world over are relying on SSI SCHAEFER as their partner for future-proof logistics solutions. When it comes to mastering the ever more complex and dynamic processes in your warehouse, our experts are there for you. As the world‘s leading supplier of logistics systems, we not only offer everything for your internal storage needs, but also concentrated IT power.

Companies thespecialists world overwho are listen relying onwill SSI not SCHAEFER their for Developed by and rest untilasyou arepartner satisfied. future-proof logistics solutions. When it comes to mastering the ever more complex and dynamic processes in your warehouse, our experts are there +971 4 804 8100 | info.ae@ssi-schaefer.com for you.

As the world‘s leading supplier of logistics systems, we not only offer ssi-schaefer.com everything for your internal storage needs, but also concentrated IT power.

Developed by specialists who listen and will not rest until you are satisfied. +971 4 804 8100 | info.ae@ssi-schaefer.com ssi-schaefer.com

How can companies best mitigate their Supply Chain risk?

With yet more government and industry regulations looming on the horizon, companies are under pressure to keep up with the latest legislation, guidelines and best practices to maintain compliance.

In this expert contribution, Tim Bandos, Vice President – Cybersecurity, Digital Guardian,* makes the case for taking a comprehensive approach to data security and what can be done to diminish risks to supply chains

C

ompanies across the globe, including in the Middle East, today face the challenge of balancing strict data privacy rules, such as PCI-DSS (Payment Card IndustryData Security Standard) and GDPR, (The General Data Protection Regulation 2016/679 is a regulation in EU law on data protection and privacy for all individuals citizens of the European Union and the European Economic Area) with the growing need to leverage customer data.

In addition to these pressing demands, finding better ways to mitigate supply chain risk is a further top priority. Everything from applying rigorous cyber security technologies, processes, and supply chain management strategies, to implementing a framework to assess and monitor supplier integrity.

With supply chains becoming more complex, the consequential risk exposure for businesses is growing. While the rise of third-party outsourcing has enabled corporations to innovate and boost

26 JUNE 2019

efficiencies, with regulatory scrutiny tightening – and financial penalties in the face of compliance violations growing – taking steps to minimise risk, protect the smooth-running of operations, and assure customer confidence, is a vital yet tricky path to navigate.

Taking a holistic approach to data security is a must – and there are a number of steps organisations can take to mitigate their supply chain risk.

Know who you’re doing business with Better due diligence on third-party relationships will improve transparency within the supply chain. But for many corporations, conducting this due diligence efficiently and effectively is a challenge when dealing with thousands of third parties and vendors.

Deploying efficient and automated screening and using machine learning algorithms to speed up this process, can reduce the cost and time frame of conducting due diligence on suppliers. Similarly, ongoing monitoring

programmes can automatically flag if a supplier is connected to criminal activity or Politically Exposed Persons (PEPs) who pose a greater risk of corruption and bribery.

Address IT and cyber risks A ‘belt and braces approach’ should incorporate a vulnerability assessment and ongoing monitoring of the network and all connected devices, alongside the organisation’s websites, apps and firewall configurations.

Having remediated any gaps in IT security, the next step is to focus on updating processes to prevent these from reappearing, ensuring that the IT practices implemented are in line with industry standards to reduce the chance of unintentionally opening the enterprise to new risks.

Security awareness training for the workforce is the final vital step, ensuring that staff are able to identify and avoid cyber threats like phishing, malware and scams. Utilising security tools to scan emails, manage communications and quarantine any malicious threats that make

EXPERT CONTRIBUTION

*The Author Tim Bandos is Vice President, Cybersecurity at Digital Guardian. He has over 15 years of experience in the cybersecurity realm with a heavy focus on Internal Controls, Incident Response & Threat Intelligence.

*Digital Guardian Waltham, Massachusettes, USA-headquartered Digital Guardian provides the industry’s only data protection platform that is purpose-built to stop data theft from both insiders and external adversaries, according to a company press note.

The Digital Guardian Data Protection Platform performs across the corporate network, traditional endpoints, and cloud applications. It is buttressed by the DG Cloud, a big data security analytics backend that sees and blocks all threats to sensitive information.

it through the enterprise’s security perimeter should also be in place.

Many organisations are eliminating the risks posed by the vulnerabilities of the traditional browser by disconnecting it from local IT and moving it to the cloud to create an additional layer of security.

Finally, when it comes to the transfer of personal or sensitive data between a supplier and vendor, compliance tools can help find data leaks before hackers do.

Understand supply chain dependencies Modelling and analysing the supply chain – including identifying the operational impact of a critical supplier’s facility being out of commission – will help uncover any hidden or overlooked areas of high risk, revealing the dependencies and bottlenecks that will need to be addressed to minimise any potential disruption.

Automated risk assessment and advanced risk modelling can deliver the insights

companies need to ensure they can quickly halt the use of unsafe suppliers or define operational risk management strategies.

This may lead to a further diversification of suppliers, or the signing-up of alternate suppliers who are poised to step in and replace parts of the supply chain in the event of a disruption.

Take an integrated approach to supply chain risk Many organisations lack an integrated approach to managing the end-to-end delivery of products or services to customers that involves back office, middle office, risk management, business developers, finance and IT. As a result, they lack a clear picture of risk across the entire supply chain.

With each department working in silos and using their own methods and technologies to assess risk relating to their individual areas of work, it’s easy to miss the bigger risk picture until something goes wrong. At which point the available

mitigation options are limited and can be very costly to implement.

Instead, organisations should take a more integrated approach and consider the impact of a potential failure at any point along the supply chain – such as a data centre outage as well as evaluating how different business units collaborate to deliver on broader organisational goals.

Conclusion Today’s technology solutions can help organisations minimise risk in their supply chains, making it easier to automate workflows, compress the time needed for data mining and aggregation, and monitor large third-party data ecosystems. Similarly, utilising AI (Artificial Intelligence) and integrated risk analytics can make it easier to identify and assess supplier related threats – including cybersecurity breaches, money laundering, insolvency, data mishandling and regulatory noncompliance – so that organisations can act promptly to manage or remove the risk source.

JUNE 2019 27

COVER STORY: UAE FOCUS REPORT

UAE: The pioneer and premier hub-centre for logistics in the Middle East The UAE has retained its rankings as the third-best globally and the ďŹ rst regionally among top 55 emerging markets for logistics

28 JUNE 2019

COVER STORY: UAE FOCUS REPORT

As a well-established Middle East hub for transport and logistics, the UAE retains its pole position in the region and makes the cut among the leading logistics centres internationally. Counting one of the world’s busiest airports and the Middle East’s largest port among its facilities, the transport sector makes a significant contribution to Dubai’s economy as well as that of the wider UAE. The Oxford Business Group makes the case for UAE’s primacy as a leader in the logistics segment

T

he UAE logistics sector is on a roll.

Analysts and industry executives believe that the strong offerings by the free zones, massive investments in road, rail and other transport segments and fast-growing E-commerce are some of the key reasons that are driving the logistics industry and putting the UAE and other Gulf countries ahead of the most of the emerging markets globally.

Bassel El Dabbagh, CEO, Abu Dhabi at Agility, said the UAE has been at the number three for the last few years and number one in the region following the results of the recently released 2019 Agility Emerging Market Index.“The UAE received strong ratings due to high ratings for legal and business frameworks,”he noted.

“Additionally, the UAE free zones have created good environment for businesses such as 100% foreign ownership and repatriation of capital among other incentives. Also, infrastructure spend on ports, airports and rail and strong legal frame

JUNE 2019 29

COVER STORY: UAE FOCUS REPORT

work cement UAE’s position under business fundamentals,”he added.

According to Shailesh Dash, Chairman, Gulf Pinnacle Logistics (GPL), the UAE logistics industry has two aspects.“Firstly, it serves as a transshipment hub and secondly as a major consumer for imported goods.

Hence, the outlook of the UAE logistics industry depends on two factors - a strong local economy and strong regional and emerging economies,” he affirmed.

A growing industry Big-ticket infrastructure projects and growing e-commerce is driving the industry growth. The UAE’s logistics markets have also benefitted greatly from vast investment in physical infrastructure with industry estimates putting its size at US$ 30 billion.

Domestically, the UAE is investing in big ticket infrastructure projects such as Al Mafraq-Al Ghuwaifat Road upgrade and the creation of a 1,200km rail network. The market is also undertaking expansions at its main air and sea ports. Jebel Ali, which serves as a multi-modal hub and free zone and facilitates domestic, regional and global trade flows, connecting the UAE with 140 ports worldwide, is undergoing expansions to increase handling capacity to 22.1 million TEU. The UAE is trying to position itself to be the region’s E-commerce hub by encouraging new businesses and startups such as Shipa.com and luring global talent and investment through ambitious projects such as Commercity in Dubai. The Emirate is building the AED 3.2 billion E-commerce city which would be spread over 2.1 million square feet.

Positive outlook Citing IMF forecasts, Dash of GPL said the UAE economy is expected to grow by 3.66% in 2019 versus 2.9% in 2018 but the growth in volume of imported goods and services are expected to grow by 2.24% in 2019 against 3.16% in 2018.

In 2017 transport and storage accounted for 11.2% of Dubai’s economy at a value of AED 46.1bn (US$12.5bn), second only to wholesale and retail trade, which accounted for 25.8% of the economy. Although the Emirate’s economy has had difficulties in recent years due to a series of largely external factors, the transport and logistics sector has by and large bucked the trend.

30 JUNE 2019

Despite challenges, the transport and logistics sector in the UAE has by and large bucked the trend. Some of the most important entities within the sector are state owned, such as Dubai Airports, which operates Dubai International Airport (DXB) and the new Al Maktoum International Airport, the Dubai World Central (DWC); port operator DP World; and Emirates and flydubai airlines.

Government Revenue & Expenditure Government investment in the sector is on the rise, with infrastructure accounting for 21% of Dubai’s 2018 budget, the largest chunk in the history of the Emirate. Dubai earmarked AED 11.9bn (US$ 3.2bn) in 2017 for infrastructure, up 46.5% from the year before, partly due to preparations for Dubai’s Expo 2020, which will be the first world expo held in the MENA region.

In revenue terms the transport and storage sector outperformed other sectors as the largest contributor to Dubai’s economic growth, with an 18.5% share in 2018, exceeding the contribution of wholesale and retail trade, traditionally the largest sector. In absolute terms its contribution to the economy increased from AED 35.8bn (US$9.7bn) in 2012 to AED 46.1bn (US$12.5bn).

With increased government spending on infrastructure, ambitious strategies and the drive to maintain leading positions in the airport and trans-shipping arenas, Dubai’s transport and logistics sector is well placed to prosper moving forward.

As with any industry, the transport and logistics sector faces challenges such as oil price fluctuations, regional political instability, and policy coordination with other Emirates and the wider GCC. In spite of this, Dubai, whose well-diversified economy is far less exposed to oil price fluctuations than those of the other Emirates, delivered its largest budget to date in 2018 with considerable infrastructure expenditure.

Likewise, while the broader region may sometimes seem beset by political and security concerns, Dubai and the UAE as a whole are viewed as a haven of stability.

Policy coordination will be essential for largescale projects reaching beyond Dubai, such as the future rail and hyperloop systems.

In the short term, Expo 2020 will continue to drive major road and metro expansions,

while partnerships between government agencies and leading national and international companies encourages further innovation. Among the Emirate’s particular strengths has been its recognition of the role that technological developments can play in transport and logistics as well as in attracting new business and investment to Dubai.

Abu Dhabi With major port, airport, road network and railway projects under way, Abu Dhabi’s transportation sector has become a major focus of investment in recent years.

International investors and developers are playing a central role in infrastructure planning, construction and management, which is seen as a strategic priority driving the Emirate’s economic growth and diversification initiatives.

Home of the country’s capital, Abu Dhabi City, and comprising 86.7% of its land area, 30% of its population and around 60% of the national GDP, Abu Dhabi remains an important player in the administration and development of both local and national transport systems.

Efficient road, railway and public transport networks are expected to promote the internal movement of people and goods, while expansions at ports and airports will support exports and help capitalise on the Emirate’s strategic geographic position between Asia, Europe and Africa, making it a natural transit hub.

Performance The transport and storage sector accounted for AED 27.75bn (US$7.55bn) of the Emirate’s GDP in 2017, or 3.3% of the total, according to the“Statistical Yearbook of Abu Dhabi 2018”, published by Statistics Centre Abu Dhabi (SCAD).

Indicative of the capital-intensive nature of the industry and the significance of infrastructure investments, transport was responsible for gross fixed capital formation of AED17.1bn (US$ 4.7bn), comprising 9.4% of the total across the economy. Meanwhile, the total stock of foreign direct investment in 2016 – the last year for which figures were available – stood at AED 1.3bn (US$353.9m).

While this was a significant drop from AED 4.9bn (US$1.3bn) in 2015, this is mostly due to changes in the classification system that year, according to SCAD.

GCC SUPPLY CHAIN & LOGISTICS E X H I B I T I O N & CO N F E R E N C E Co-Located Events

9

TH

EDITION

7 . 8 . 9

Oman Convention October 2019 & Exhibition Centre

EXHIBITORS PROFILE Airport and Aviation Airline Operators, Air Cargo Carrier, MROs Cargo Handling Terminals – Seaport and Airport Commercial Vehicles Financial , insurance and legal professional services Facility Management Government Authorities ICT Solutions Intermodal Equipment Suppliers Land Transport / Road Haulage Operators Logistics, Cargo and Supply Chain Manufacturers, Importers & Exporters Oil and Gas Transportation, Storage and Handling Parking, ITS and TrafďŹ c Management Ports Authority, Terminals & Free Zones

Ports and Maritime

SUPPORTERS

DIAMOND SPONSOR

Public & Private Transport Companies Rail and Metro companies Railway technology and equipment providers Road Infrastructure Ship Building and Repair Ship equipment manufacturers and suppliers Shipping Lines, Freight & Logistics Companies & Agents Smart City, Urban & Public Transport Special Economic and Free Trade Zones Transport - Multimodal (Air, Rail, Road, Sea) Transport Services and Solutions Tunneling and Underground Infrastructure companies Warehousing, Storage, Distributions and Transportation Systems

For Participation contact:

+968 9909 6096 infra@alnimrexpo.com www.infraoman.com

COVER STORY: UAE FOCUS REPORT

Streamlining Delivery Efficient and on-budget project delivery has also become an increasingly important priority for Abu Dhabi’s government as it has sought to enhance the allocation of public resources. Musanada considers a number of factors when pre-qualifying and selecting private sector partners, including previous experience of similar projects, sector specialisation and financial capability.

Preference is usually given to small and medium-sized enterprises (SMEs), following

32 JUNE 2019

the government’s overall strategy of promoting SME growth.

The organisation is also in the process of easing private sector participation in the development of transport networks, including through the use of public-private partnerships (PPPs). While foreign investors and contractors are welcome, they are obliged to establish a local presence first.

There are two international airports serving the Emirate: Abu Dhabi International Airport (AUH), located 30 km east of Abu Dhabi

City; and Al Ain International Airport (AAN), some 15 km north of Al Ain. There are also two smaller domestic airports: Sir Bani Yas Airport, on Sir Bani Yas Island; Dalma Airport, serving Dalma Island; and Al Bateen Executive Airport, an international business aviation airport located in the capital.

All facilities are operated by ADAC, which was founded in 2006 as part of a broader restructuring to support business and tourism development. That same year the company launched an AED 30bn (US$ 8.2bn)

COVER STORY: UAE FOCUS REPORT

investment programme for Abu Dhabi.

Employees and assets from the Department of Civil Aviation were integrated into ADAC in 2007, and in 2009 Terminal 3 was opened.

The terminal became the home of Etihad Airways, the UAE government-owned flagship carrier.

Road infrastructure development Abu Dhabi’s road system has expanded dramatically since the establishment of the UAE. In 1975, the first year for which full

figures were available, Abu Dhabi had an estimated 591 km of roads. As of 2017 there were 1852 km of one-lane roads; 4856 km of two-lane roads; 1906 km of three-lane roads; 2,288 km of four-lane roads and 457 km of five-lane roads in the Emirate. In addition, there were 19,512 km of internal roads; 14,522 km in the Abu Dhabi Region, 2115 km in the Al Ain Region and 2845 km in Al Dhafra.

Ongoing investment in the Emirate’s road network is creating opportunities for a range of contractors, with several major projects

pushing ahead in 2018 and 2019. January 2018 saw the opening of the Sheikh Khalifa Bin Zayed Highway, formerly known as the Mafraq-Ghuwaifat Highway.

Started in March 2014, the project entailed a six-phase programme of work on a 246-km stretch of the 327-km motorway, for a total investment of AED 5.3bn (US$1.4bn). The road links the capital to the border of Saudi Arabia to the west, forming a vital transport corridor and a major route for the growing Al Gharbia (Western) Region. Also in Al

JUNE 2019 33

COVER STORY: UAE FOCUS REPORT

Gharbia, the Madinat Zayed-Al Mirfa Road is being upgraded, with the new link expected to be inaugurated in early 2019.

To the east, in September 2018 construction reached the halfway point on the AED 338m ($92m), 140-km Al Faya-Razeen-Al Quaa Road development project, an important route for the Emirate’s agriculture sector in particular.

Etihad Rail Growing traffic on the roads has helped catalyse the development of the Etihad Rail network, the UAE’s first commercial railway system. The rail line connects to into the broader GCC regional network currently under development and could eventually connect the UAE with Oman and markets in the wider Middle East and beyond, with the total value of rail projects across the Arabian Peninsula estimated at US$ 79bn.

The Etihad Rail network is operated by a company of the same name, majority-owned by the Abu Dhabi government (70%), with the remainder held by the federal government.

Overall, the UAE railway network is expected to expand across 1200 km.

Commercial operations on the newly inaugurated rail line commenced in December 2015. The first stage includes a 264-km connection linking the gas producing areas of Shah and Habshan in Al Dhafra to the Port of Ruwais on the Gulf. The track is specifically designed to transport sulphur produced at the Shah and Habshan oil and gas fields to Ruwais for Abu Dhabi National Oil Company.

By the end of 2017 some 15m tonnes of granulated sulphur had been transported on the line, equivalent to more than 950,000 truck trips. The railway operates 240 wagons

34 JUNE 2019

and seven locomotives, and each journey has the capacity to transport 22,000 tonnes of sulphur per day, and each train produces approximately 70-80% less carbon dioxide than the equivalent number of trucks.

Next Phase In November 2018 the UAE Ministry of Finance and Abu Dhabi Department of Finance signed an agreement for the financing of the second stage of the railway’s development. That same month Etihad Rail announced it was in the advanced stages of commercial and technical negotiations with a range of potential joint venture partners.

Pre-qualification applications for design-and-build contracts attracted bids from leading construction companies and contractors in Spain, Italy, China, India and the UAE. The second stage of the network will run 605 km from Ghuwaifat on the Saudi

border to Fujairah on the east coast, raising the system’s capacity from 6.35m tonnes per year to over 45m.

As well as providing opportunities for a range of contractors, once built, the new rail link is expected to bring significant economic, social and environmental benefits.“It is a logical step to move from trucks to rail. It is cleaner, cheaper and has fewer health and safety risks,” said Ross Thompson, Chief Commercial and Strategy Officer at Abu Dhabi Ports.“It will also strengthen the transportation corridor from Fujairah to the Khalifa Industrial Zone Abu Dhabi (KIZAD),”he continued.

Abu Dhabi Ports owns and operates 11 ports and terminals, nine of which are in Abu Dhabi.

Outside the Emirate, the firm is responsible for Fujairah Terminals at the Port of Fujairah in the Northern Emirates and the Kamsar Container Terminal in the Republic of Guinea. Abu Dhabi Ports also manages KIZAD, a major industrial, logistics and trade complex adjacent to Khalifa Port.

Ports play a central role in the economic development of Abu Dhabi, contributing 3.6% of the Emirate’s non-oil GDP, comprising a value-added contribution of AED19.6bn (US$5.3bn) in 2017. Khalifa Port, situated midway between Abu Dhabi and Dubai, has become one of the leading ports in the region since its inauguration in 2012. It is currently undergoing an AED10bn (US$2.7bn) expansion, with nearly AED 4bn (US$1.1bn) coming from Abu Dhabi Ports itself, and the remainder financed by the company’s international partners.

In 2016 Abu Dhabi Ports signed a deal with Chinese state-owned China Ocean Shipping Company, better known as COSCO, which will invest AED 2.7bn (US$734.9bn) over the life of the port to raise its annual capacity from 2.5m twenty-foot equivalent units to 8.5m.

In May 2018 the port operator signed another deal worth AED4bn (US$1.1bn) with Switzerland-based Mediterranean Shipping Company to establish a new container terminal at Khalifa Port. Both deals are expected not only to raise capacity, but to support the growth of international maritime connectivity, and encourage further partnerships and greater trade volumes.

Outlook

Ports

While the slowdown in the economy has effected development in some sectors, the strategic importance of transport has seen major projects continue to move forward. With activity picking up in 2018, opportunities for international partners to develop, finance and manage key infrastructure projects are likely to continue.

A solid flow of investment in major projects, ranging from the MTC at AUH, the container terminal expansion at Khalifa Port and improved roads in Al Dhafra (the vast Western region also known as Gharbia), all bode well for the sector’s coming years.

All commercial and community ports are managed and operated by Abu Dhabi Ports, which was established by Emiri decree in 2006.

(Global Supply Chain acknowledges and appreciates the valuable input of the Oxford Business Group in compiling this report – Editor.)

Be Part of a Leading Network Group for Training & Networking

SCHOLARSHIPS FOR DESERVING UAE NATIONALS

Legal advocacy

Use of FIATA Documents FIATA Worldwide Member connectivity.

Talent Connect Worldwide, E-Learning.

Complimentary Internship, Skill upgrade, Mentoring & Innovation ideas

NAFL, P.O.Box: 60944, Dubai, United Arab Emirates

New batch starting from July 2019. Kindly contact shankar@nafl.ae or +971 50 7802631

UAE economy on upward course thanks to investor-friendly Government policies Global Supply Chain conducted an exclusive interview with Billy FitzHerbert, Regional Editor-Middle East, Oxford Business Group (OBG) on a range of subjects relating to the expected performance of the UAE economy; the escalating trade wars; the impact of free zones for the country’s economy; the size of the logistics-supply chaintransportation-distribution sector in the UAE economy and future trends

T

he following is the transcript of the conversation held with Billy FitzHerbert and his take on the various issues raised on the state of the UAE economy and the performance of the logistics, supply chain and allied segments in the wider economic framework.

Global Supply Chain (GSC): On the whole how is the UAE economy faring at the present time vis-à-vis the corresponding period last year 2018? How are the indicators looking?

36 JUNE 2019

Billy FitzHerbert (BFH): The UAE’s economy is expected to grow by 2% in 2019, compared to 1.7% in 2018 and 0.8% in 2017. So it is clear that the economy is on an upward trajectory.

The economy will be further bolstered as the effects of the new investment law and the various fiscal consolidation efforts introduced as a result of the fall in oil prices begin to reverberate more fully through the economy.

Meanwhile enhanced oil prices also bode well, and will help replenish state coffers and boost banking liquidity in the region.

UAE FOCUS

GSC: What impact if any will the current wave of international trade wars notably the US-China spat have on the UAE economy, if at all?

BFH: China is the UAE’s second largest

GSC: What are the opportunities and challenges confronting free zones in the short and / or long term futures?

BFH: The new foreign investment law

trading partner and so of course any adverse effects on China’s economy as a result of the trade war with America is a concern for the UAE. However with China’s economy expanding 6.4% year-on-year in Q1-2019 (market estimates had forecast growth of 6.3%) it appears the Chinese government is successfully managing the general slowdown in the country’s economy and so far absorbing the effects of the trade war.

What’s more the recent signing of several agreements between the UAE and China associated with the ‘One Belt One Road’ initiative bode well for the future, and indicates a period of enhanced economic relations between the two countries for the foreseeable future.

GSC: How significant are the free zones for the UAE economy? What percentage roughly of the country’s economy do these constitute?

BFH: The free zones play a key role in the

UAE’s economy. In addition to offering financial incentives to international investors, these zones provide companies with sectorfocused environments that allow for ample collaboration and cross-pollination when it comes to developing new ideas and products.

The UAE Central Bank estimates suggest that free zones were responsible for 19.5% of the country’s total exports in 2017.

GSC: How big is the logistics / supply chain / transportation / distribution sector for the UAE economy?

BFH: According to the UAE government the

transport and storage sector accounted for 5.4% of the country’s GDP in 2017, down from the 7.4% recorded in 2016. While the figure has fallen there is no denying the importance of the sector, with the country home to the busiest port in the Middle East in the shape of Dubai’s Jebel Ali Port.

Meanwhile Khorfakkan Port in Sharjah’s Gulf of Oman exclave and Fujairah Port ensure the country has strategic access to ports on both sides of the Straits of Hormuz,

The UAE Central Bank estimates suggest that free zones were responsible for

19.5% of the country’s total exports in

2017

an important consideration given the recent inflammation of regional tensions with Iran.

Analysis by the Dubai Chamber of Commerce and Industry anticipates the UAE’s container port traffic will rise from 22.4 million TEUs in 2017 to 28.4 million TEUs by 2021. It also projects the country’s air freight market expanding by a CAGR (compounded annual growth rate) of 4.8% over the same period. Another boost to the UAE’s transport sector will come with the Etihad Rail Project, expected by 2021.

approved in October 2018 will no doubt pose something of a hurdle to free zones when it comes to attracting and retaining specific tenants. Given that the new law has opened the door to full foreign ownership of companies in specific sectors in the UAE for the first time, free zones will likely need to enhance their offerings to remain competitive.

Indeed in anticipation of the new law, which is due to come into full effect in 2019 once the sectors deemed appropriate for the scheme have been agreed upon, Free Zones in the country reduced registration fees, licensing and other service fees in a bid to maintain competitiveness.

However given the important role that free zones play in the country, particularly in the less oil rich northern emirates, it is unlikely that the new law will lead to their demise.

More likely is that the country’s authorities will balance the sectors most likely to gain from the new law with those currently best served by free zones and thereby foster an environment that minimizes the potential for overlap and competition.

GSC: Based on current trends and economic indices, what is your / OBG prognosis for the UAE economy and the logistics and supply chain sector for 2019?

BFH: Chinese investment associated with

the One Belt Road One Belt initiative will play a key role in growing of the country’s logistics and supply chain sector in the near to medium term, with a spate of recent signed agreements in Beijing in April 2019 by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE & Ruler of Dubai, underscoring the importance of the UAE’s developing relationship with China.

More broadly the economy looks set to continue its growth trajectory, with expansion and investment supported by the country’s robust regulatory framework, the above mentioned new investment law as well as higher hydrocarbons receipts on the back of a higher oil price in 2018 and 2019.

JUNE 2019 37

Magnets for drawing

FDIs

Freezones or Special Economic Zones (SEZs) were established to accelerate development by creating an efficient business environment and encouraging foreign direct investment (FDI).

The UAE track record in developing freezones has been excellent borne out by number of special economic zones in the country and the volume of local, regional and international investment

I

t is now well documented that Freezones attract businesses through cost advantages and preferential treatment, and they foster skills development and technology transfer, particularly from foreign firms. Successful SEZs, moreover, source goods and services from domestic companies, and they sell to them as well.

They thus contribute to transforming the national economy as a whole. It moves on from being a labour-intensive economy to a skills- and technology-intensive one. Moreover, SEZs have also been successful test-beds for economic reforms as has been demonstrated in many parts of the world and the GCC. Meanwhile, according to a report by the Oxford Business Group (OBG), Dubai has taken several initiatives to boost export and

38 JUNE 2019

re-export trade. New financing and financial security channels are likely to help export and re-exporting firms in Dubai cement recent gains and create a foundation for the emirate’s further growth as a retail transit centre.

Dubai Customs recently signed a memorandum of understanding with the Dubai Free Zone Council to implement a virtual stock guarantee (VSG) initiative, a move that will provide financial support to freezone (FZ) companies and Customs warehouses involved in the re-export of the emirate’s retail goods.

The resulting facilities are designed to boost re-exports or exports of foreign products and services by making duty guarantees available to FZ-registered firms that send goods abroad via air and sea ports

in the emirate, or through land exits to the wider UAE. The VSG policy, which is the first of its kind in the world, is intended to help solicit foreign investment and create a virtual trade zone as part of Dubai Customs’ larger push to develop smart services.

FZ-registered companies and firms that reexport goods stored in Customs warehouses will have access to greater financial flexibility with these guarantees, with more than AED 455bn (US$123.9bn) in securities being made available for this purpose. Of that total, AED327m (US$89m) will be allocated to bank guarantees, while AED 128m (US$34.9m) will fund cash guarantees.

There are currently over 18,000 companies operating in the emirate’s 24 FZs and 37 Customs warehouses. Such businesses are

FREEZONES

Chinese conglomerate eyes KIZAD for Middle East expansion plans East Hope Group signs MoU with KIZAD Chinese manufacturing giant East Hope Group is working with KIZAD on the feasibility of setting up a development worth more than US$ 10bn at Abu Dhabi’s industrial hub.

The agreement was signed by Samir Chaturvedi, CEO, KIZAD, and Meng Changjun, President of Investments, East Hope Group, in the presence of Rashed Matar Alsiri Alqemzi, the UAE Consul General in Shanghai. Under this agreement, the two entities are looking into a possible 15year, three-phase plan to develop 7.6sqm of land at KIZAD. In phase one of the proposed project, East Hope will develop an alumina facility, while the second phase would include a red mud research centre and recycling project.

The final phase of the project would see large-scale upstream and downstream non-ferrous metal processing facilities.

As part of the agreement, KIZAD will support East Hope Group across all areas as it investigates setting up in Abu Dhabi, including ensuring the best utility prices, acquiring the land, creating a master-plan and handling the import of raw materials through Khalifa Port and storage.

“Abu Dhabi’s strategic location and the connectivity offered by Khalifa Port continue to be a powerful magnet for Chinese investments in Abu Dhabi,” remarked Samir Chaturvedi, CEO, KIZAD. “This project will become the benchmarking project along the Belt and Road Initiative (BRI) between the UAE and China,” commented Yongxing Liu, Chairman, East Hope Group.

The East Hope Group produces aluminium and related products, as well as animal feed. The Company was founded in 1982 and has plants in Vietnam, Indonesia and Singapore. (Statistical source—OBG) Samir Chaturvedi (front left), CEO, KIZAD; and Meng Changjun (front right), President, Investments, East Hope Group sign the agreement.

required to apply to the Client Management Department of Dubai Customs to make use of the funds and other VSG facilities, which became available on March 23.

FZs drive growth in outgoing trade in 2018 The development comes as figures from Dubai Customs indicate that the growth of non-oil re-exports from FZs was particularly strong last year. Their value rose from AED173bn (US$47bn) in 2017 to AED 225.6bn (US$61.4bn) in 2018, accounting for 42.6% of total exports and re-exports, as well as 17.4% of total trade.

Moreover, the 30.4% expansion in FZ re-exports stood in contrast to contractions of 11.3% and 5.4% in exports and re-

exports conducted via direct foreign trade, respectively, as well as a mere 1.3% gain in the value of FZ exports.

FZ re-exports are already a major growth driver of Dubai’s outgoing trade, and the VSG has the potential to boost their importance as the policy is rolled out this year. The VSG could also help to ameliorate the 73.5% contraction in non-oil trading experienced by Customs warehouses last year, with the value of imports and exports falling from AED 39.2bn (US$10.7bn) in 2017 to AED10.4bn (US$2.8bn).

China remained Dubai’s largest nonoil trading partner in 2018, with total commerce between the two reaching AED139bn (US$37.8bn). India was the emirate’s second-largest trading partner at

AED 116bn (US$31.6bn), followed by the US (AED 81bn US$22.1bn), Saudi Arabia (AED55bn-US$15bn) and Switzerland (AED49bn -US$13.3bn).

Despite the ongoing tariff dispute between the US and China – two of the emirate’s largest trading partners – and the emergence of a protectionist approach in US trade policy under the administration of US President Donald J. Trump since 2017, industry stakeholders in Dubai remain optimistic about further domestic growth.

Among the logistical means used to move goods in and out of Dubai last year, airborne trade was valued at AED 612bn (US$166.6bn), followed by sea trade at AED 483bn (US$131.5bn) and land trade at AED 205bn (US$55.8bn).

JUNE 2019 39

Oman’s top port offers excellent incentives for potential business SOHAR Freezone continues to attract international investment thanks to attractive incentives, availability of low-cost energy as well as its modern infrastructure and the deep-water, world-class adjacent SOHAR Port

T

he Sultanate of Oman’s premier Freezone, which has already helped in attracting sizable foreign direct investment (FDI) in a host of industries over the last six years, is set to lure further investments in mineral/ metal-based industries, logistics as well as downstream petrochemical ventures that will come up at its highly attractive destination spread over 4,500 hectares.

2018 has been a very exciting year for the Freezone. We have once again witnessed growth across all sectors and have some major projects in the pipeline, which we expect to announce in the future. We are

40 JUNE 2019

currently working on some very interesting activity in logistics and metals.

SOHAR Freezone has recently signed a deal to produce calcined petcoke. The finished product, calcined petroleum coke (CPC), will be exported to aluminium and steel industries in and around the GCC region. In addition, the plan will also produce steam and raw petroleum coke as feedstock for downstream petrochemical industries.

Another agreement has also been signed to expand the ferro-alloy footprint, thanks to the energy infrastructure, which caters to such industries to operate their electric-arc furnaces.

Pittie Group Investment On another front, India’s Pittie Group, one of the biggest cotton yarn manufacturers in the world, is investing US$ 300 million cotton and yarn plant is set to produce 100,000 tonnes of cotton yarn per annum.

This move is expected to generate over 1,500 jobs, transforming the Freezone into a manufacturing hub for textiles and garments, and providing downstream opportunities in the clothing sector for new businesses.

SOHAR is already planning the second phase of this project. In 2019, we will be ready to accommodate interests in this field since the needed land and utilities

SOHAR PORT & FREEZONE

An aerial view of SOHAR Port

are abundantly available as well excellent connectivity to world markets through the Port of Sohar and the excellent road access to GCC and the Middle East.

The availability of energy is a major factor for energy-intensive projects like the ones just mentioned. SOHAR Freezone boasts a large grid power infrastructure augmented by solar power.

Moreover, SOHAR Freezone has also entered into a new partnership to develop a 58-hectare area to offer turnkey, readymade built-to-lease logistics and light industrial units in various size formats, including box and flex-log.

JUNE 2019 41

SOHAR PORT & FREEZONE

SV Pittie Sohar plant Unit 1 inaugural ceremony

This initiative will further help position SOHAR as the premier logistics hub in the region. SOHAR is also developing a truck rest area at the Freezone. In addition to providing parking and other amenities for trucks and drivers, the project will help reduce road congestion in Liwa and Sohar.

Upward trend for the Downstream Industry SOHAR is also looking at the development of the downstream plastics industry. We have the benefit of the US$ 4.5 billion-Liwa Plastics’ polyethylene and polypropylene project, which will provide the raw materials to support a variety of industries within the Freezone itself.

In the plastics industries, generally, the more you try to go into downstream, the more secure your business becomes. The Freezone strategy is to minimise raw material exports and to attract investments into more downstream industries, which will enhance value addition.

In an attempt to attract investment in the food processing industry, the new 45-hectare food cluster at SOHAR Port includes a major flourmill, a world-class sugar refinery, and a grain silo complex. The flourmill, operated by Sohar Flour Mills, will produce 500 tonnes

42 JUNE 2019

of flour daily, while the planned sugar refinery, owned by the Oman Sugar Refinery Company, boasts a production capacity of one million tonnes per annum. The dedicated agro-bulk terminal adds capacity to Oman’s strategic food reserves as well.

Within a short period of six years, SOHAR Freezone has emerged as a highly competitive investment destination. In addition to the economical land-lease rates, the Freezone has an abundance of energy and water, which are available at reasonable prices. It also offers stability, a fully developed infrastructure, 100% foreign ownership and no personal tax.

Sun Petrochem Complex in SOHAR Freezone

The Freezone is also striving to ensure a seamless flow of goods, using a road corridor between the Freezone and the Port.

Omanisation on the upswing SOHAR Freezone also offers the element of local manpower. Not only is SOHAR helping to drive the government’s diversification and Omanisation strategies, we are actively leading by example and demonstrating the unique benefits of choosing to hire locally as opposed to going abroad.

Young Omanis are highly educated having studied at universities both here and abroad and bring with them a wealth of local knowledge. While the minimum Omanisation rate at the Freezone is 15%, the actual average rate is actually 25% among existing tenant companies.

If one considers the biggest employers, such as the cotton yarn project where hundreds of jobs will be offered to Omanis, there is a considerable amount of interest from the local youth segment.

In addition to the staunch focus on efficiency and value for SOHAR tenants, the Port and Freezone development is also vested in driving Oman’s transformation into a global logistics hub, and expanding regional and global investment in the Freezone.

SOHAR NAVIGATE

SOHAR Port and Freezone launches ‘SOHAR Navigate’, a regional first The innovative online route planner contains deep-sea and short-sea schedules connecting to 550 ports worldwide

T

he Sultanate of Oman’s SOHAR Port and Freezone recently launched SOHAR Navigate, a unique online route planner, which provides information on available connections to hinterland destinations. The platform is the first of its kind in the region and will comprise of sea schedules connecting to 550 ports worldwide.

“The Navigate platform was initially launched by our partner, Port of Rotterdam. It is considered the most comprehensive route planner of its kind.

Capitalising on this technology, we have modified SOHAR Navigate to suit our regional and global stakeholders and provide them with outreach, as well as a user-friendly means to locate the most efficient and optimal routes for their activities.

Users of SOHAR Navigate are able to plan routes from specific areas,

via SOHAR, in an easy and convenient way,” noted Mark Geilenkirchen, CEO, SOHAR Port and Freezone.

The platform takes into consideration the specified point of departure and the desired final destination, to offer the user several different routes. Based on modality and expected transportation time, users can then choose whichever option works best for them.

The platform also offers extensive analysis tools and dashboards with relevant user data.

“SOHAR Navigate will become an increasingly valuable resource to improve efficiency within the supply chain. It will also provide visible and convenient options for local importer and exporter groups, who generally rely on logistic providers,”remarked Anacin Kum, CEO, Hutchison Ports SOHAR. Making the case for SOHAR Navigate, Kum said that imitative and resource was specifically developed for companies seeking smarter ways to plan their container transports.“The launch of the beta version of this tool is a good first step and we are excited about its role in the global logistics market,”he further affirmed.

SOHAR Navigate comprises of a business directory and the option to get in touch with any specific organisation, while also providing insight into the carbon footprint of any container transport.

JUNE 2019 43

CARGOGULF-KESTREL PARTNERSHIP

CargoGulf appoints Kestrel Liner Agencies as UK liner service agent Global NVOCC (Non-Vessel Operating Common Carrier) CargoGulf has responded to strong growth in United Kingdom’s exports by extending its reach with the appointment of Kestrel Liner Agencies as its liner service agent for the country

T

he freshly inked deal between CargoGulf and Kestrel Liner Agencies marks the beginning of twice-weekly sailings of a liner service from London Gateway and Southampton to all major ports in the Arabian Gulf, complementing CargoGulf’s liner service from Europe which started in April 2018 and has since seen steady growth from all ports of loading.

Kestrel Liner Agencies is the UK’s largest liner agency. This partnership enables

44 JUNE 2019

CargoGulf to draw on its core capabilities and in-depth experience to offer customers in the UK the efficiency of a single provider to meet all their container shipping needs to the Middle East. The two companies are known for their operational excellence, trustworthiness and dedication to providing consistent high-quality service.

“Twice-weekly departures from the London Gateway and Southampton enable us to present our unique customer-centric

footprint on this niche trade,” commented Bryn Kerr, Commercial Director, Kestrel Liner Agencies.

Hans-Henrik Nielsen, CargoGulf’s Global Director, remarked that Kestrel’s strong presence and excellent track record as a reliable and commercially astute shipping company is a perfect fit with CargoGulf’s profile in the Middle East trades.

“Our clients depend on us for the enhanced service levels, rapid turnaround, efficient communication, fast documentation and no-nonsense business that come from being small and nimble and serviceorientated. We look forward to building on that with Kestrel in the UK,”he added.

CargoGulf has a strong track record in providing shipping services across Europe, the Americas, the Middle East and Asia with 2-3 sailings weekly from each origin.

Established in 1985, it is a global ocean cargo carrier operating with its own fleet of containers, enabling time and cost efficiencies for customers across diverse sectors, from FMCG to chemicals and electrical goods.

Kestrel Liner Agencies, now in operation for a quarter of a century, has its head office in Stansted, UK.

Subscribe today June 2019 Issue 60

May 2019 Issue 59

April 2019 Issue 58

ENHANCING THE BUSINESS OF LOGISTICS

ENHANCING THE BUSINESS OF LOGISTICS

ENHANCING THE BUSINESS OF LOGISTICS

KINGDOM

CALIBRATIONS THE LOGISTICS INDUSTRY ON A ROLL IN SAUDI ARABIA

RAIL REVISITED Keeping Track:

THE UAE:

Dubai South

Bracing for EXPO 2020

King Abdulaziz Port Major Maritime Moves

LOGISTICS LEADER

BY FAR

UD Trucks

Sultanate of Oman Country Report

Unfurls the New Quester

•GSC_May_2019_Cover.indd 1

Investing in Infrastructure

5/7/19 21:27

GCC Rail Projects Gaining Traction

DP World

Breaking new ground in BreakBulk

•GSC_APRIL_2019_Cover.indd 1

Log Square

Freezones

Squaring the benefits with technology

Turkish Cargo

Relocating to its new hub in Istanbul

4/9/19 7:45

SOHAR Port & Freezone

Force for economic good

Shoring up new investments

•GSC_June_2019_Cover.indd 1

6/10/19 6:12

PLEASE FILL IN ALL FIELDS IN BLOCK CAPITALS Name:

Company Name:

Position:

PO Box:

Telephone:

Mobile:

Annual Subscription in the UAE (US$ 30.00)

Signature ____________________

City:

Country: E-mail:

Annual Subscription in the GCC (US$ 65.00)

Annual Subscription outside GCC (US$ 100.00)

Date:_______________

P. O. Box 49784, Dubai, UAE, Tel: 04 3978847/3795678 Email: info@signaturemediame.com

Call: +971 4 3978847/3795678 or e-mail to info@signaturemediame.com

NAFL Suhoor Dinner Business Reception The Dubai-based National Association of Freight and Logistics UAE (NAFL) is one of the leading and largest freight and logistics industry bodies in the region. Recently, there has been a spurt of activities as the Association increasingly aligns and streamlines its operations consistent with various UAE government initiatives

T

he Association is proactive and assists its members to seize market opportunities and convenes regularly to discuss and solve industry issues. With the core objective of raising industry standards in the UAE, it has been working on various training activities in conjunction with the private and government sectors.

It has signed up various MOUs with UAE government bodies and is also paving the way to attract more UAE nationals in this sector.

As part of their regular annual networking events, NAFL recently hosted a grand Suhoor celebration banquet reception at the plush Armani Hotel, Burj Khalifa during the Islamic Holy month of Ramadhan.

The glitzy event attracted various dignitaries from various sectors such including the Dubai Civil Aviation Authority, Dubai South, KIZAD, Dubai Police, the Jordanian Consulate, the Lebanese Business

46 JUNE 2019

Council, the Jordanian Business Council, several Sharjah Government Authorities, airline heads and other senior NAFL and industry officials.

The main purpose of this gathering was to recognize and appreciate NAFL supporters and also bring its members to current on developments. These include the new winds of change sweeping the UAE and the large Chinese investments in the UAE that will boost trade, imports, exports and re-exports particularly in the light of the much-touted Chinese Government’s ‘Belt & Road Initiative’ (BRI). This will no doubt have tremendous implications for the UAE’s logistics and freight segment.

NAFL also presented Awards and tokens of appreciation on this occasion to both honour and recognize the contribution of the recipients in the logistics, supply chain and freight transportation sectors.

NAFL

Stimulus packages from the Federal and individual Emirate’s Governments Another focus was to highlight the UAE and individual Emirate’s Governments stimulus programmes for investors. A senior official from Dubai South spoke on the stimulus package for NAFL members looking for dual licensing and available cost reductions.

Another objective was to also highlight the Dubai Expo 2020 and the work associate with this mega event. Nadia Abdul Aziz, President, NAFL and Vice President, FIATA, stated that the Association will continue to work consistent with the UAE leaders’ objectives in developing the freight, logistics and supply chain sectors in the country.

NAFL has been assisting various young professionals and graduates in the industry and will focus on more groundwork with young students in the UAE. The NAFL President has met with various UAE universities and will be working with them to assist students in internship programmes, training and job placements in the industry through the NAFL network.

Overseas representations The NAFL has represented the UAE freight sector regionally and globally. In the past the Association has represented the industry in India, Cameroon, Malaysia, Germany, Tanzania, Turkey, Ethiopia and many others.

At the official level, the Association has met and discussed various opportunities in the UAE with various visiting Transport Ministers from overseas, and the response was always been very positive and encouraging. NAFL is looking at further collaborations with the UAE government to work on several aspects.

Some of the services NAFL offers its members are legal consultations and dedicated lawyer services; complimentary and discounted training courses; complimentary events all year long, reduced rates for various regional logistics events, media exposure, free listings in their annual directory and free distribution and listings both regionally and globally.

In addition to the mentioned any industry issues or assistance, the NAFL board and team is there to assist its members or any investors interested to setup in the UAE.

International industry exhibitions Attendees were briefed on the upcoming three-day 2019 RAME Field Meeting to be held in Beirut, Lebanon from June 24-26. It is being positioned as the excellent meeting and opportunity to exchange

JUNE 2019 47

NAFL

NAFL

knowledge and challenges to develop the sector, get hold of valuable information in the field of logistics and promote alliances and business between the Middle East, Africa and the world especially in the context of rebuilding Iraq and Syria.

The opportunities and implications of the upcoming Transport Logistics Exhibition in Munich, Germany and the Dubai Airshow 2019 were also discussed.

NAFL will acquire a stand or become a sponsor to give its members a platform to market their companies at no cost using the NAFL platform. Many members expressed their intention to be present at all of the exhibitions that were deliberated.

NAFL has also won the Dubai Quality appreciation award for representative entities last year. NAFL has also supported various logistics associations and signed MOUs to increase the work capacity between two countries.

NAFL regularly takes part in various meetings with UAE Government offices to work on industry opportunities and bottle necks, and the meetings have always been very successful with positive government response.

CSR a priority NAFL will be further working on Corporate Social Responsibilities (CSR) activities to help serve the community. It offers scholarships and supports special needs centres as well as assists foreign students to work in the UAE. NAFL also participated with a UAE pavilion in the FIATA World Congress held in the Indian capital New Delhi in September 2018 and was reportedly the busiest stand. Various dignitaries from the Indian Government and relevant Ministries also visited the stand.

NAFL has also works closely with the Abu Dhabi Government offices and ports including KIZAD and Khalifa Port to help its members expand their businesses in the UAE capital.

The Suhoor grand reception was attended by members and officials of the NAFL Board including Shankar Subramaniam, Executive Director and Abdulla Bin Khediya, Director DCAA, Dubai Chamber, Awardees, and senior Dubai Custom officials and DP World and several other professionals from various logistics, supply chain transportations services.

In 2017, FIATA World Congress Malaysia present on the occasion was Khalid Ghanem Al Ghaith, the UAE Ambassador to Malaysia accompanied by the Malaysian Transport Minister, HE Anthony Loke Siew Fook.

48 JUNE 2019

FIATA DIPLOMA HOLDER 2018

shankar@nafl.ae

+971 50 780 2631

Strategizing in a time of disruption and transformation The logistics ecosystem is currently being battered by two industry forces – an external force that is customer driven thanks to the proliferation of E-commerce and the other internal that is being determined by existing, new and emerging technologies that is altering and revolutionizing the logistics landscape.

That is the view of eminent logistician and strategist Tom Craig, President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain – Editor

The current status quo – what is happening?

Logistics is a commodity business. 3PLs and logistics service providers are dealing with significant industry disruption. It comes from two fronts. One disruptor is external, customer generated. This is the E-commerce speed of order delivery that is increasing and growing across industries and markets.

The focus is on the end-to-end supply chain and how to make goods move across it more quickly – supply chain velocity with its inventory velocity and order delivery/restock velocity.

That is a change from logistics being the dominant emphasis in supply chain management. This could redefine, for

50 JUNE 2019

example, the 3PL niche to 3PSCM – or SCMaaS (Supply Chain Management as a Service).

Two, another disruption comes from within the field. Technology is adding new requirements, new ways, to what firms must do, from digitalization to blockchain. It is also developing new competitions that use technology, including platform businesses.

Also, logistics providers in a niche are expanding their reach into other niches.

There is also the dual use disruptor, shippers who are taking control of their logistics and bringing activities in-house.

Think of it as a type of reverse outsourcing.

In turn, such dual-use actions could mean shippers taking their logistics capabilities to

outside retailers and manufacturers – and taking business away from present logistics providers and 3PLs based on proven end-toend supply chain results.

The results of the disruptions are threats to these firms, including disintermediation.

At the same time, it is opening new opportunities. Against the perception that logistics is a commodity business, the challenge is how to adapt and to transform.

This reasons questions on what a firm should do, in what context is should be a service, and how to differentiate it. It is about strategy. Some say it is being agile, which often means doing something the firm was not designed to do or is within their operations capability. Agile is not a substitute for transformation and strategy.

Strategy First, digital is not a strategy. With technology, it is a topic of it enables and is utilized in the business.

That said, the discussion can now advance.

All logistics providers – 3PLs, transport, forwarders, warehouses, logistics centers, ports and other – and whether they are asset based or non-asset based, should have a strategy. The strategy identifies challenges, issues and risks with markets and their dynamics; and, going forward, can set the direction where the company is going for new markets and new business and customers to grow sales and profits.

A strategy does not have to be long-term.

Given the rate of disruption and change, five years or less is a good time frame.

Surprisingly, despite the purpose and benefit, many service providers do not have a viable, current strategy. Instead they view developing one as too much work, react to what customers ask or what competitors are doing, or have one that is outdated. In a way, they letting business vagaries drive their direction and future. Having no strategy can be a risky approach, especially if competitors, established and the potential new entrants, have a well-done strategy and especially given the reality of global economic change.

The strategy can be operations focused or it can be a significant change, to transform the company. Which strategy is developed can be based on and reflect risks for the business or for the service sector, competition, or changing customer and/or market segments.

EXPERT OPINION: 3PLS AND LOGISTICS SERVICES PROVIDERS

There are two parts to a successful strategy – first, developing it and second, executing it. Developing a strategy comes from serious, formal strategic planning process. It involves a blend of financial and non-financial objectives. The plan should also focus on the present business, and how it will adapt to the future and new services and opportunities. It identifies where the company is going – and where it is not going – and what it takes to succeed in that service arena.

Planning The starting point is where the business is now as to present dynamics with trends, markets, services, and customers; value proposition, and competitive positioning, coupled with

sales and profits.

At any stage of the planning process, at the minimum, a SWOT (Strengths, Weaknesses, Opportunities, and Threats) is useful for the present and potential future scenarios.

Planning contains mistakes that can limit the ability to develop a worthwhile strategic plan.

Some of the shortcomings that can lead to a bad strategy include firms that only go out one to three years with the plan. While that span is easier to deal with than looking out five years or so, that is based too much on what has happened, miss-assumes what

JUNE 2019 51

EXPERT OPINION: 3PLS AND LOGISTICS SERVICES PROVIDERS

will happen, over-assumes the company’s position in that future trend and is not strategic. It is more like a budget or extended sales plan.

As a corollary to the short-span view, companies confuse goals with strategies.

Increasing sales or reducing costs by a certain percent is a goal, not a strategy.

Providers try to mimic what a competitor is doing, especially if it is new. That is not a strategy. A good strategy separates the business from the competition. Emulating competitors or chasing the next new logistics service is a short-sighted approach that often lacks understanding of market niches, operational nuances and value proposition.

Familiarity and comfort Companies stay with what they are familiar with, their comfort zone. This can be a myopic bias against performing the diligent planning analysis that is necessary.

It does not identify and address hard questions and challenges, such as how sustainable the present business approach and operations model are. That negates the concepts of strategy and of planning.

Planning is not rigorous and does not adequately assess both external and internal factors. Internal analysis does not get the rigorous attention it should get.

Diligent self-assessment is required, but it can be difficult. Overestimating abilities and underestimating problems short-circuit any serious planning.

Companies oversimplify trends, especially global ones, and their impact on future business. They let the past dictate too much of what will happen, even against the dynamic and changing global business world.

Firms do not comprehensively deal with uncertainty and look at “what if”scenarios. It is a dismissive approach based on the past.

Change, with its speed with competitors and markets, is more than local; it is global.

Wish list Businesses create a wish list of strategies.

Aggregating a catalog of possible ideas, no matter how worthwhile, is not strategic planning. The effort dictates potential strategic choices be culled and prioritized and that hard decisions must be made on what to do.

52 JUNE 2019

Service providers do not scrutinize how well the strategy positions the service offering to the dynamics of global economic and business forces. They also overestimate potential competitive advantage – and underestimate its transiency that the firm may create with its strategic placement.

Companies keep the planning within the C-level and do not extend down to others who may have a better understanding of the present activity. There is also an underlying assumption that what a company and its executives do are transferable to the future.

This lack of communication and buy-in with the planning often continues with attempts to execute the strategy – attempts that often fail.

Execution Strategy implementation is critical. The best strategy, without good execution, will struggle to succeed. The more dramatic the strategy is with scope and impact, the greater is the challenge for sound execution. An operations strategy has an internal capabilities and requirements, perhaps best-in-class.

The significant change strategy has both internal and external requirements. Each strategy carries different proficiencies to implement and creates challenges for present executives, managers and employees to have the skills to implement the strategy.

Achieving the strategy separates planning for the sake of planning and planning needed to advance into the future. It also demonstrates the conviction that the company has in the strategy. Executing the strategy means communicating the plan within the company and with stakeholders to build support – both operating and financial – and aligning the business with its strategy. Adequate resources and defined responsibilities for execution are needed, along with corresponding, relevant metrics to track progress.

The transformation and its rate of implementation to carry out the strategy may require recognizing and dealing with the need for change management. In reality, there are strong similarities between change management and successfully implementing a strategy.

Tied to the grand strategy are underlying

strategies and implementation plans for sales, pricing, marketing, positioning, operations and technology. Logistics providers should recognize the life cycle to their services, especially with regard to profit maximization and the commodity service view of their offerings. This service life cycle creates the need for the subset of strategies and fulfillment of them. How people within the company grasp and execute these opportunities can have significant effect on long-term margins.

Well structured pyramid of responsibilities While direction can come from the top level, carrying out the execution needs clear lines of responsibilities couple with a coordinated, cross functional effort by different groups within the company. There can be no standalone activities for success. It should be integrated. The potential for assuming away the need for the collaboration can create unnecessary surprises and failure to gain all the market, operations and financial benefits of the strategy.

Strategy planning and execution are not easy for logistics providers. They are a challenge. However, as difficult as they are, doing nothing in the face of dynamic competitive and market changes can be dangerous for all stakeholders.

Logistics providers that do not plan well and implement well let events drive where they are going. They do not control it. These providers are market followers, not market leaders. As a result, these firms do not transition to take full advantage of opportunities. They miss out on market share, customers and profits that companies, who have a coordinated planning and strategy execution, earn and enjoy.

Conclusion Times are changing. There is a new reality in supply chains, and as a result, in logistics. Call it chaos or disruption, talk about adapting or transformation.

Customers are doing more and expect more with the new reality they are dealing with.

Business as usual is vanishing. Established practices are being replaced. There is risk in doing nothing. The best path forward is to develop and execute a strategy.

DRIVING FOR EXCELLENCE

SSI Schaefer welcomes Mick Schumacher as its Brand Ambassador SSI Schaefer recently announced the appointment of Formula 2 Driver Mick Schumacher as its new brand ambassador. The reigning Formula 3 champion, who is competing in the FIA Formula 2 Championship this year, has entered a long-term partnership with intralogistics specialist SSI Schaefer

M

ick Schumacher has been impressing fans, colleagues, and the general public alike for years with his stringent quest for improvement. The 20-yearold son of seven-time Formula 1 World Champion, Michael Schumacher, has long since created his own identity. As a member of the exclusive driving field of the FIA Formula 2 Championship, Mick is now one of the best young racers in the world.

‘Driving for Excellence’ is the clear goal for this partnership.

“Mick brings a great passion that impresses us here at SSI Schaefer. Giving everything, gaining experience, and accepting challenges that work towards a solution with intent and hyper focus is what connects our company with him. True to our corporate tagline, ‘Think Tomorrow.’, SSI Schaefer looks ahead to achieve the ambitious goals for our customers,” stated Michael Mohr, EVP Sales for SSI Schaefer.

Mick Schumacher has been driving for the Italian PREMA team since 2016. The 2018 European Formula 3 Champion just recently started driving for the Formula 2

Corporate Profile: SSI Schaefer Group The SSI Schaefer Group is the world’s leading provider of modular warehousing and logistics solutions. Its group headquarters are located in Neunkirchen (Germany) and has eight domestic and international production sites and approximately 70 worldwide operative subsidiaries.

SSI Schaefer designs, develops and manufactures systems for warehouses, industrial plants, workshops and offices. Its portfolio includes manual and automated solutions for warehousing, conveying, picking and sorting, plus technologies for waste management and recycling. In addition, SSI Schaefer is now a leading provider of modular, regularly updated software for inhouse material flows.

SSI Schaefer offers highly sophisticated, turnkey systems.

As an international player, it can deliver one-stop solutions to all four corners of the earth.

Its comprehensive portfolio encompasses design, planning, consulting, and customerspecific after-sales services and maintenance.

team this year and he joined into the Ferrari Driver Academy program that promotes young talents.

As a young driver, Schumacher started test driving in April for Bahrain in Formula 1 for both, Ferrari and Alfa Romeo Racing.

“I am delighted to welcome SSI Schaefer as a partner because we share the same core values: a down-to-earth attitude, striving for success, innovative solutions, as well as longterm thinking and action. ‘Think Tomorrow.’ suits me too,”stated Schumacher.

Various joint activities are planned for the partnership between the intralogistics specialist and the Formula 2 driver. Mick Schumacher is taking part in a panel discussion at one of the world’s largest in-house events in the industry this autumn, with international logistics users, expert discussions, keynotes and live demonstrations of logistics systems.

JUNE 2019 53

TURKISH CARGO IFTAR RECEPTION

Turkish Cargo hosted a grand, lavish Iftar reception to commemorate the Islamic Holy month of Raadhan. The sumptuous banquet, held at the Rixos Premium JBR in uptown Dubai. The guests comprising associates, partners, agents, members of the freight community and Global Supply Chain were warmly welcomed by Halit Tuncer, Regional Sales Manager, Cargo (Middle East & South Asia) and other Turkish Cargo officials based in the region. Here we provide some snapshots of this pleasurable event.

54 JUNE 2019

TURKISH CARGO IFTAR RECEPTION

JUNE 2019 55

Safeguarding your organisation from attacks via your third-party vendors In the current context where third-party vendors are an integral part of most organisations’ ecosystem, bad actors with ulterior motives and malicious objectives are beginning to single out third-parties, as a means to gain access to enterprises’ networks.

Morey Haber, Chief Technology Officer & Chief Information Security Officer, BeyondTrust, outlines seven steps organisations can take to exert better control over third-party vendor network connections and secure remote access

56 JUNE 2019

higher) extent as the organisation’s internal privileged users. Neglecting to do so will create a weak spot in your organisation’s security that is ripe for exploit.

Because organisations typically use IT products and software solutions from a variety of vendors, IT is tasked with the enormous burden of having to secure remote access for these vendors, so that they may provide maintenance and troubleshooting for their products. As a consequence, organisations are faced with the dilemma of having to provide the needed access while also guarding against malware and bad actors entering through third-party connections.

Given that third-party vendors are an integral part of most organisations’ ecosystem – something that isn’t going to change anytime soon – there are seven steps you can take to exert better control over third-party vendor network connections and secure remote access.

Monitor & examine vendor activity

R

ealising that most large organizations today have sophisticated security defenses, bad actors are beginning to target third-party vendors, as a means to gain access to an enterprises’ network. In fact, in 2018, over 11 significant breaches were caused by exploitation of third-party vendors and according to Carbon Black’s 2019 Global Incident Response Threat Report, 50% of today’s attacks leverage what they call, ‘island hopping’, where attackers are not only after an enterprises’ network, but all those along the supply chain as well.

IT admins, insiders, and third-party vendors need privileged access to perform their roles, but this shouldn’t mean ceding control of the IT environment to them.

Organisations typically allow vendors to access their networks to perform a variety of different functions. However, this privileged access should be secured to the same (or

First, it’s imperative to scrutinise third-party vendor activity to enforce established policies for system access. You want to understand whether a policy violation was a simple mistake, or an indication of malicious intent.

You should implement session recording to gain complete visibility over a given session.

Finally, you should correlate information so that you have a holistic view that enables you to spot trends and patterns that are out of the ordinary.

Here are some ways to approach monitoring: • Inventory your third-party vendor connections to understand where these connections come from, what they are connected to, and who has access to what • Look for firewall rules that permit inbound connections for which you are unaware • Perform vulnerability scans on your external-facing hosts to search for services that are listening for inbound connections • Validate that your enterprise password security policies apply to accounts on inbound network connections • Implement policies and standards specific to third-party issues, and use technical controls to enforce them • Monitor for any security deficiencies and then address them

EXPERT OPINION

About BeyondTrust: Johns Creek, Georgia, USA-based BeyondTrust is the worldwide leader in Privileged Access Management, offering the most seamless approach to preventing data breaches related to stolen credentials, misused privileges, and compromised remote access, the company said in an emailed statement.

BeyondTrust unifies the industry’s broadest set of privileged access capabilities with centralised management, reporting, and analytics, enabling leaders to take decisive and informed actions to defeat attackers, the statement continued.

Limit network access Most of your vendors only need access to very specific systems, so to better protect your organisation, limit access using physical or logical network segmentation and channel access through known pathways. You can accomplish this by leveraging a privileged access management solution to restrict unapproved protocols and direct approved sessions to a predefined route.

Apply multiple robust internal safeguards As with other types of threats, a multilayered defense is key to protecting against threats arising from third-party access. Apply encryption, multi-factor authentication (MFA), and a comprehensive data security policy, amongst other measures.

Educate your internal and external stakeholders On average, it takes about 197 days for an organisation to realise that it has been

breached. A lot of damage can be done in 197 days. Educate across the enterprise and continually reinforce the message that the risks are real.

Conduct vendor assessments Your service-level agreement (SLA) with third-party vendors should spell out the security standards you expect them to comply with, and you should routinely review compliance performance with your vendors. At a minimum, your vendors should implement the security basics, such as vulnerability management. You should also enforce strong controls over the use of credentials – always with a clear line-of-sight into who is using the credential, and for what purpose.

Authenticate user behaviour Vendor and partner credentials are often very weak and susceptible to inadvertent disclosure. Therefore, the best way to protect credentials is to proactively manage and

control them. You can do this by eliminating shared accounts, enforcing onboarding, and using background checks to identity-proof third-party individuals that are accessing your systems.

Prevent unauthorised commands & mistakes One step you want to take is to broker permissions to various target systems using different accounts, each with varying levels of permission. You should restrict the commands that a specific user can apply, via blacklists and white-lists, to provide a high degree of control and flexibility. To this end, use a privileged access management solution, enable fine-grained permission controls, and enforce the principle of least privilege (PoLP).

Vendor access is often inadequately controlled, making it a favoured target of cyberattackers. By layering on these seven steps, you can exert better control over third-party access to your environment and make significant progress toward reducing cyber risk.

JUNE 2019 57

INTERVIEW: DHL EXPRESS

58 JUNE 2019

INTERVIEW: DHL EXPRESS

Putting people first propels DHL into prime position In the ninth annual list of Best Workplaces in the UAE, DHL made a striking return to the top spot from second place last year, due to its efforts to ensure its employees have the best possible work environment. Judges also applauded DHL for a rich and sustainable culture characterised by trust, respect and fairness

L

ogistics giant DHL again made it to the top in a study by the ‘Great Place to Work’ (GPTW) institute, a global research training and consultancy firm which revealed its 2019 annual list of Best Workplaces in the country.

In a wide-ranging interview, Geoff Walsh, UAE Country Manager, DHL Express, spoke exclusively with Global Supply Chain on winning the coveted award and a host of other subjects including growth plans for the company and the opportunity and challenges for the future.

The following is the transcript of that interview: Global Supply Chain (GSC): DHL Express has been ranked No. 1 in the ‘2019 UAE Great Place to Work’ Survey. Briefly, how and why did DHL Express make the cut?

Geoff Walsh (GW): One of the main pillars at DHL Express is its people. Without them, we would be unable to get this recognition.

DHL Express has a number of well-designed motivational, recreational and retention and development programmes in place to enhance the staff working experience, which makes it such a great place to work.

We invest in long-term development of our people and over the years, we have developed ways of rewarding people for their contribution to the business through initiatives like ‘Employee of the Year’, ‘As One’, ‘Appreciation Weeks’ and other initiatives.

We also focus on ensuring that the right knowledge, talent and systems are in place to strategize the development of individuals that stand out as having the potential to become leaders.

GSC: DHL Express is the only logistics company to make it into the coveted league.

How significant is that distinction for the company?

GW: It is fantastic recognition and even more special since we are the only logistics company to earn such a position. It is a great honor for us not only to achieve the top ranking but to be number one for the fifth time.

JUNE 2019 59

INTERVIEW: DHL EXPRESS

The award is a reflection of our continuous efforts to remain a great place to work in the region by implementing an efficiently designed motivational program to empower our employees. We believe that happy and motivated employees deliver extraordinary services to its customers at every step.

GSC: How do you intend to retain this honour in 2019?

GW: Our strategy to retain this position is rooted in our culture of ‘continuous improvement.’This means that we will continue to introduce newly-designed recreational and retention development programs to enhance the staff working experience.

For DHL Express, employee satisfaction is not a one-off experience. We continuously work towards building excellence for our staff and our customers. We implement various initiatives for development of our workforce such as ‘Employee of the Year’, ‘Appreciation Weeks’ and other motivational activities.

We are committed to creating a healthier working environment through a high level of motivation among our employees which can be attributed to our corporate culture founded on openness, trust and mutual respect. We consistently listen to our people, invest in their development, recognize their achievements and celebrate successes. We also live by our core values of ‘Respect & Results’, which creates a very positive working environment.

GSC: How has this award motivated your workforce in the region?

GW: Being ranked number one for the fifth time is an outstanding achievement for DHL Express and naturally, our employees are thrilled that they continue to be a part of such a great organizational culture. It is also tremendous encouragement for them to use every opportunity provided to grow within the company.

We foster an open and creative workplace culture and encourage teamwork, which brings out the best in our people. We are confident that this award will empower our staff and motivate them to raise the bar, not just at the workplace, but even beyond as they deliver extraordinary services to our customers.

GSC: What implications does this have for your operations (in the region)?

GW: As mentioned previously, being ranked number one in the UAE Great Place to Work survey is an achievement that we are

60 JUNE 2019

proud of. This recognition only confirms that DHL Express, is the leading express courier provider in the UAE and Middle East region, and is renowned for its innovation and market leading logistics solutions that support economic growth in the UAE through the facilitation of global trade.

This recognition will also boost our image in the region, and encourage even more businesses to partner with DHL Express, as one of the leading logistics companies in the world.

GSC: Moving to other subjects, what are your growth plans for UAE? GW: UAE is one of the region’s biggest markets for DHL Express and a key revenue and driver in the region.

Looking ahead, we anticipate that Expo 2020 Dubai will boost the logistics industry, as huge investments are being made to drive infrastructure and logistics services for this massive event. It is expected to drive the logistics and supply chain segment even further and cement the UAE’s position as a global leader in logistics.

We are looking forward to the opportunity to connect with businesses and commercial representatives from around the world, to share our value proposition and to support their logistics needs in the future.

GSC: How has DHL Express UAE fared in 2018 and Q1-2019 and what is your outlook for the remainder of this year?

GW: During the last year, DHL Express has witnessed positive growth across the region alongside growth in retail E-commerce in 2018. According to research, the e-commerce market in the MENA region is estimated to surpass US$ 15 billion at 35% CAGR in 2020, and this is presenting significant opportunities for logistics operators to expand their operations.

We are expecting this to continue throughout 2019 as cross border e-commerce presents strong growth opportunities that are waiting to be tapped. With the proliferation of online trade, a product in one corner of the world today is now easily accessible to customers at the opposite end in just a few clicks. This has allowed online retailers to access markets and customers across the globe.

The UAE’s logistics sector is substantial, representing about 13% of the UAE’s total GDP, making it an attractive market to operate in. As we are getting closer to EXPO 2020, the logistics and supply chain segment is expected

Based in Dubai, Geoff Walsh is responsible for all DHL Express operations within the UAE. Walsh’s career with DHL spans more than 20 years. He joined the company back in 1996 as Operations Manager for the East Midlands in the UK, and since then has moved into several senior roles within DHL MENA such as Area Operations Manager, MENAT Road Network Manager, Oman Country Manager and lastly the Country Manager of DHL Saudi Arabia before arriving in the UAE. During his time Walsh, a British national, has overseen and vastly contributed to the expansion of the air and road networks of the DHL footprint in the Middle east over the last 16 years, along with market leading performance and service enhancements.

to strengthen even further and cement the UAE’s position as a global leader in logistics.

DHL Express UAE already has a strong foothold in the market and a growing network to support new online operators entering the market.

GSC: What are the current opportunities and challenges confronting DHL Express UAE? GW: DHL Express in the region has been working hard to improve service quality for our customers, and local businesses are recognizing that we offer some of the bestin-class network services to enable them to facilitate trade with the rest of the world.

Global trade is expected to continue, with logistics as a key pillar. As Dubai continues to grow as the hub for transshipment routes with good ease of business in terms of customs and regulations, we are certain that the UAE will continue to be an important hub for the logistics sector. With Expo 2020 approaching, we expect an even bigger boost in the logistics and supply chain segment.

Parts that take Parts that take you further Parts that take you further you further Keeping your truck on the road, that’s what it’s all about. And Genuine Volvo Parts are vital to maximise your uptime and achieve the most profitable ownership possible. They are designed to fit and function perfectly with your truck.

Keeping your truck on the road, that’s what it’s all about. And Genuine That’s why we 2 yearsyour fitteduptime parts and warranty when Volvo Parts areoffer vital atofull maximise achieve thefitted mostby an authorized Volvo workshop.

It covers repair or replacement ofGenuine parts.

Keeping your truck onpossible. the road,They that’s it’s alltoabout. profitable ownership arewhat designed fit andAnd function And even consequential damages. perfectly Volvo Partswith areyour vitaltruck. to maximise your uptime and achieve the most

profitable ownership possible.

They are designedon to fit and function See it as warranty business.

That’s whya we offer aonfullyour 2 years fitted Read parts more warranty volvotrucks.com when fitted by perfectly with your truck. an authorized Volvo workshop. It covers repair or replacement of parts.

And even That’s why consequential we offer a full damages.

2 years fitted parts warranty when fitted by anSee authorized Volvo workshop.

It covers repair or on replacement of parts. it as a warranty on your business.

Read more volvotrucks.com And even consequential damages.

See it as a warranty on your business. Read more on volvotrucks.com

genuine volvo parts

2fitted years parts 2warranty years 2 years fitted parts fitted parts warranty

warranty